Document And Entity Information
Document And Entity Information | 12 Months Ended |
Oct. 31, 2022 shares | |
Document Information [Line Items] | |
Entity Registrant Name | VersaBank |
Current Fiscal Year End Date | --10-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Document, Type | 40-F |
Document, Annual Report | true |
Document, Period End Date | Oct. 31, 2022 |
Entity, File Number | 001-40805 |
Entity, Incorporation, State or Country Code | Z4 |
Entity, Address, Address Line One | 140 Fullarton Street, Suite 2002 |
Entity, Address, City or Town | London |
Entity, Address, State or Province | ON |
Entity, Address, Postal Zip Code | N6A 5P2 |
Entity, Address, Country | CA |
City Area Code | 519 |
Local Phone Number | 645-1919 |
Title of 12(b) Security | Common Shares, no par value |
Trading Symbol | VBNK |
Security Exchange Name | NASDAQ |
Entity, Common Stock Shares, Outstanding | 27,245,782 |
Entity, Current Reporting Status | Yes |
Entity, Interactive Data, Current | Yes |
Entity, Emerging Growth Company | true |
Entity, Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Amendment Flag | false |
Entity Central Index Key | 0001690639 |
Document Registration Statement | false |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Auditor Name | KPMG LLP |
Auditor Location | Toronto, ON, Canada |
Auditor Firm ID | 85 |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity, Address, Address Line One | 122 East 42nd Street, 18th Floor |
Entity, Address, City or Town | New York |
Entity, Address, State or Province | NY |
Entity, Address, Postal Zip Code | 10168 |
City Area Code | 800 |
Local Phone Number | 221-0102 |
Contact Personnel Name | Cogency Global Inc. |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Assets | |||
Cash (note 4) | $ 88,581 | $ 271,523 | $ 257,644 |
Securities (note 5) | 141,564 | 0 | |
Loans, net of allowance for credit losses (note 6) | 2,992,678 | 2,103,050 | |
Other assets (note 7) | 43,175 | 40,513 | |
Total assets | 3,265,998 | 2,415,086 | |
Liabilities and Shareholders' Equity | |||
Deposits (note 9) | 2,657,540 | 1,853,204 | |
Subordinated notes payable (note 10) | 104,951 | 95,272 | |
Other liabilities (note 11) | 152,832 | 134,504 | |
Total liabilities | 2,915,323 | 2,082,980 | |
Shareholders' equity: | |||
Share capital (note 12) | 239,629 | 241,321 | |
Contributed surplus | 1,612 | 145 | |
Retained earnings | 109,335 | 90,644 | |
Accumulated other comprehensive income (loss) | 99 | (4) | |
Total equity | 350,675 | 332,106 | |
Total equity and liabilities | $ 3,265,998 | $ 2,415,086 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Interest income: | ||
Loans | $ 123,190 | $ 88,055 |
Other | 3,627 | 1,433 |
Interest income | 126,817 | 89,488 |
Interest expense: | ||
Deposits and other | 44,600 | 26,446 |
Subordinated notes | 5,551 | 2,885 |
Interest expense | 50,151 | 29,331 |
Net interest income | 76,666 | 60,157 |
Non-interest income | 5,726 | 5,200 |
Total revenue | 82,392 | 65,357 |
Provision for (recovery of) credit losses (note 6(b)) | 451 | (438) |
Revenue less provision for credit loss | 81,941 | 65,795 |
Non-interest expenses: | ||
Salaries and benefits | 26,796 | 20,243 |
General and administrative | 18,732 | 11,110 |
Premises and equipment | 3,865 | 3,653 |
Noninterest expense | 49,393 | 35,006 |
Income before income taxes | 32,548 | 30,789 |
Income tax provision (note 14) | 9,890 | 8,409 |
Net income | 22,658 | 22,380 |
Other comprehensive income (loss): | ||
Foreign exchange gain (loss) on translation of foreign operations | 103 | (4) |
Comprehensive income | $ 22,761 | $ 22,376 |
Basic and diluted income per common share (note 15) (in CAD per share) | $ 0.79 | $ 0.96 |
Weighted average number of common shares outstanding (in shares) | 27,425,479 | 21,752,930 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Total | Issued capital [member] | Issued capital [member] Ordinary shares [member] | Issued capital [member] Series 1 preferred shares [member] | Issued capital [member] Series 3 preferred shares [member] | Additional paid-in capital [member] | Retained earnings [member] | Accumulated other comprehensive income [member] |
Balance at Oct. 31, 2020 | $ 152,612 | $ 15,690 | $ 145 | $ 73,194 | $ 0 | |||
Statement Line Items [Line Items] | ||||||||
Issued during the year | 75,101 | |||||||
Cancelled during the year | (39) | (15,690) | ||||||
Fair value of stock-based compensation | 0 | |||||||
Adjustment for cancelled common shares | 39 | |||||||
Transfer of transaction costs on redemption of Series 3, preferred shares (note 12) | (1,123) | |||||||
Net income | $ 22,380 | 22,380 | ||||||
Dividends paid on common and preferred shares | (3,846) | |||||||
Other comprehensive income (loss) | (4) | |||||||
Balance at Oct. 31, 2021 | 332,106 | $ 241,321 | 227,674 | $ 13,647 | 0 | 145 | 90,644 | (4) |
Statement Line Items [Line Items] | ||||||||
Issued during the year | 0 | |||||||
Cancelled during the year | (1,900) | (1,692) | 0 | |||||
Fair value of stock-based compensation | 1,467 | |||||||
Adjustment for cancelled common shares | (238) | |||||||
Transfer of transaction costs on redemption of Series 3, preferred shares (note 12) | 0 | |||||||
Net income | 22,658 | 22,658 | ||||||
Dividends paid on common and preferred shares | (3,729) | |||||||
Other comprehensive income (loss) | 103 | |||||||
Balance at Oct. 31, 2022 | $ 350,675 | $ 239,629 | $ 225,982 | $ 13,647 | $ 0 | $ 1,612 | $ 109,335 | $ 99 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands, $ in Millions | 12 Months Ended | |
Oct. 31, 2022 CAD ($) | Oct. 31, 2021 CAD ($) | |
Cash provided by (used in): | ||
Net income | $ 22,658 | $ 22,380 |
Adjustments to determine net cash flows: | ||
Provision for (recovery of) credit losses | 451 | (322) |
Stock-based compensation | 1,467 | 0 |
Income tax provision | 9,890 | 8,409 |
Interest income | (126,817) | (89,488) |
Interest expense | 50,151 | 29,331 |
Amortization | 1,938 | 1,729 |
Accretion of discount on securities | (533) | 0 |
Foreign exchange rate change on assets and liabilities | 9,488 | 743 |
Interest received | 116,014 | 85,390 |
Interest paid | (35,958) | (30,803) |
Income taxes paid | (6,275) | (1,388) |
Loans | (880,477) | (443,684) |
Deposits | 790,365 | 287,104 |
Change in other assets and liabilities | 14,984 | 22,294 |
Net cash flows from (used in) operating activities | (32,654) | (108,305) |
Investing: | ||
Purchase of securities (note 5) | (141,031) | 0 |
Acquisition of Digital Boundary Group, net of cash acquired | 0 | (7,473) |
Purchase of investment (note 7) | 0 | (953) |
Purchase of property and equipment | (581) | (14) |
Net cash flows from (used in) investing activities | (141,612) | (8,440) |
Financing: | ||
Issuance of subordinated notes payable, net of issue costs (note 10) | 0 | 89,498 |
Issuance of common shares, net of issue costs (note 12) | 0 | 73,226 |
Purchase and cancellation of common shares | (1,930) | 0 |
Redemption of preferred shares (note 12) | 0 | (16,813) |
Repayment of loan assumed from Digital Boundary Group | 0 | (1,410) |
Redemption of securitization liability | 0 | (8,631) |
Dividends paid | (3,729) | (3,846) |
Repayment of lease obligations | (642) | (621) |
Net cash flows from (used in) financing activities | (6,301) | 131,403 |
Change in cash | (180,567) | 14,658 |
Effect of exchange rate changes on cash | (2,375) | (779) |
Cash, beginning of year | 271,523 | 257,644 |
Cash, end of year (note 4) | $ 88,581 | $ 271,523 |
Note 1 - Reporting Entity
Note 1 - Reporting Entity | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of notes and other explanatory information [text block] | 1. Reporting entity: VersaBank (the “Bank”) operates as a Schedule I bank under the Bank Act (Canada) and is regulated by the Office of the Superintendent of Financial Institutions Canada (“OSFI”). The Bank, whose shares trade on the Toronto Stock Exchange and Nasdaq Stock Exchange, provides commercial lending and banking services to select niche markets in Canada and the United States as well as cybersecurity services through the operations of its wholly owned subsidiary DRT Cyber Inc., (“DRTC”). The Bank is incorporated and domiciled in Canada, and maintains its registered office at Suite 2002, 140 N6A 5P2. |
Note 2 - Basis of Preparation
Note 2 - Basis of Preparation | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of basis of preparation of financial statements [text block] | 2. Basis of preparation: These Consolidated Financial Statements have been prepared in accordance with the Bank Act (Canada). a) Statement of compliance: These Consolidated Financial Statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”). b) Date authorized for issuance: These Consolidated Financial Statements were approved and authorized for issue by the Board of Directors of the Bank on December 6, 2022. c) Basis of measurement: These Consolidated Financial Statements have been prepared on the historical cost basis except for assets and liabilities acquired in a business combination which are measured at fair value at the date of acquisition (see note 23 7 d) Functional and presentation currency: These Consolidated Financial Statements are presented in Canadian dollars which is the Bank’s functional currency. Functional currency is also determined for each of the Bank’s subsidiaries and items included in the financial statements of the subsidiaries are measured using their functional currency (see note 3m e) Use of estimates and judgments: In preparing these Consolidated Financial Statements, management has exercised judgment and developed estimates in applying accounting policies and generating reported amounts of assets and liabilities at the date of the financial statements and income and expenses during the reporting periods. Areas where judgement was applied include assessing significant increases in credit risk on financial assets since initial recognition and in the selection of relevant forward looking information as described in note 3 may Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are applied prospectively once they are known. |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of significant accounting policies [text block] | 3. Significant accounting policies: The significant accounting policies used in the preparation of these Consolidated Financial Statements were applied consistently to all years and are summarized below: a) Principles of consolidation: The Bank holds 100% of the common shares of DRT Cyber Inc., VersaHoldings US Corp. and VersaJet Inc. DRT Cyber Inc. holds 100% 23 100% b) Segment reporting: Effective November 1, 2021, 8 22. c) Business Combinations The Bank applied IFRS 3 23 d) Revenue recognition: Interest income on cash, securities and loans is recognized in net interest income using the effective interest rate method over the expected life of the instrument. Interest income earned but not Interest income is recognized on impaired loans and is accrued using the rate of interest used to discount the future cash flows for purposes of measuring the impairment loss. Loan fees integral to the yield on the loan are amortized to interest income using the effective interest rate method; otherwise, the fees are recorded in non-interest income. The Bank’s non-interest income stream is substantially derived from the operations of DRTC and its wholly owned subsidiaries. DRTC generates professional services revenue primarily from fees charged for IT security assurance services, supervisory control and data acquisition (“SCADA”) system assessments, as well as IT security training. Revenue is recognized when service is rendered and performance obligations have been satisfied and no e) Financial instruments: Classification and Measurement Under IFRS 9, Debt instruments Financial assets that are debt instruments are categorized into one • amortized cost; • fair value through other comprehensive income (“FVOCI”); • fair value through profit and loss (“FVTPL”). The characterization of a debt instrument’s cashflows is determined through a solely payment of principal and interest (“SPPI”) test. The SPPI test is conducted to identify whether the contractual cash flows of a debt instrument are in fact solely payments of principal and interest and are consistent with a basic lending arrangement. In the context of the SPPI test, “Principal” is defined as the fair value of the debt instrument at origination or initial recognition, which may The Bank’s loans are categorized and measured as amortized cost. Debt instruments with contractual cash flows that meet the SPPI test and are managed on a hold to collect basis are measured at amortized cost. These financial instruments are recognized initially at fair value plus direct and incremental transaction costs, and are subsequently measured at amortized cost, using the effective interest rate method, net of an allowance for credit losses. The effective interest rate is the rate that discounts estimated future cashflows through the expected life of the instrument to the gross carrying amount of the instrument. Amortized cost is calculated as a function of the effective interest rate, taking into account any discount or premium on acquisition, transaction costs and fees. Amortization of these costs is included in interest income in the consolidated statement of income. The Bank’s securities are measured at fair value and categorized as FVTPL. Equity instruments are measured at fair value and categorized as FVTPL unless an irrevocable designation is made at initial recognition to categorize as FVOCI. Gains or losses from changes in the fair value of equity financial instruments designated at FVOCI, including any related foreign exchange gains or losses, are recognized in other comprehensive income (“OCI”). Amounts recognized in OCI are not The Bank has categorized its investment in Canada Stablecorp Inc. as FVOCI and it is carried at fair value. Impairment Allowance for Credit Losses The Bank must maintain an allowance for expected credit losses that is adequate, in management’s opinion, to absorb all credit related losses in the Bank’s lending and treasury portfolios. The Bank’s allowance for expected credit losses is estimated using the ECL methodology and is comprised of expected credit losses recognized on all financial assets that are debt instruments, classified either as amortized cost or as FVOCI, and on all loan commitments and financial guarantees that are not Expected credit losses represent unbiased and probability-weighted estimates that are modeled as a function of a range of possible outcomes as well as the time value of money, and reasonable and supportable information about past events, current conditions and forecasts of future economic conditions, or more specifically forward-looking information (“FLI”) (see Forward-Looking Information below). The Bank’s ECL or impairment model estimates 12 not Loans or other financial instruments that have not 1, 2, 3. Assessment of significant increase in credit risk At each reporting date, the Bank assesses whether or not not Quantitative models may not may may With regards to delinquency and monitoring, there is a rebuttable presumption that the credit risk of a loan or other financial instrument has increased since initial recognition when contractual payments are more than 30 60 may may not Expected credit loss model - Estimation of expected credit losses Expected credit losses are an estimate of a loan’s expected cash shortfalls discounted at the effective interest rate, where a cash shortfall is the difference between the contractual cash flows that are due to the Bank and the cash flows that the Bank actually expects to receive. The ECL calculation is a function of the credit risk parameters; probability of default, loss given default, and exposure at default associated with each loan, sensitized to future market and macroeconomic conditions through the incorporation of FLI derived from multiple economic forecast scenarios, including baseline, upside, and downside scenarios. For clarity: • The probability of default (“PD”) for a loan or a financial instrument is an estimate of the likelihood of default of that instrument over a given time horizon; • The loss given default (“LGD”) for a loan or financial instrument is an estimate of the loss arising in the case where a default of that instrument occurs at a given time or over a given period; and, • The exposure at default (“EAD”) for a loan or financial instrument is an estimate of the Bank’s exposure derived from that instrument at a future default date. The Bank’s ECL model develops contractual cashflow profiles for loans as a function of a number of underlying assumptions and a broad range of input variables. The expected cashflow schedules are subsequently derived from the contractual cashflow schedules, adjusted for incremental default amounts, forgone interest, and recovery amounts. The finalized contractual and expected cashflow schedules are subsequently discounted at the effective interest rate to determine the expected cash shortfall or expected credit losses for each individual loan or financial instrument. Individual allowances are estimated for loans and other financial instruments that are determined to be credit impaired and that have been designated as stage 3. may may not The ECL model requires the recognition of credit losses based on 12 1 2 3 Forward-Looking Information IFRS 9 9 9 The Bank incorporates the impact of future economic conditions, or more specifically forward-looking information into the estimation of expected credit losses at the credit risk parameter level. This is accomplished via the credit risk parameter models and proxy datasets that the Bank utilizes to develop PD and LGD term structure forecasts for its loans. The Bank has sourced credit risk modeling systems and forecast macroeconomic scenario data from Moody’s Analytics, a third not third The Bank utilizes macroeconomic indicator data derived from multiple macroeconomic scenarios comprised of baseline, upside, and downside scenarios in order to mitigate volatility in the estimation of expected credit losses as well as to satisfy the IFRS 9 The macroeconomic indicator data utilized by the Bank for the purpose of sensitizing PD and LGD term structure data to forward economic conditions include, but are not Modified Financial Instruments If the terms of a financial instrument are modified or an existing financial instrument is replaced with a new one, an assessment is made to determine if the financial instrument should be derecognized. Where the modification does not Fair value of financial instruments Estimates of fair value are developed using a variety of valuation methods and assumptions. The Bank follows a fair value hierarchy to categorize the inputs used to measure fair value for its financial instruments. The fair value hierarchy is based on quoted prices in active markets (Level 1 2 not 3 Valuation models may may may Derivatives and embedded derivatives: Derivatives are measured at FVTPL under IFRS 9, Certain derivatives embedded in other financial instruments are treated as separate derivatives when their economic characteristics and risks are not not f) Property and equipment: Property and equipment is carried at cost less accumulated amortization and impairment. Amortization on property and equipment is calculated primarily using the straight-line method over the useful life of the equipment which typically ranges between 5 and 20 years. Property and equipment is subject to an impairment review if there are events or changes in circumstances which indicate that the carrying amounts may not g) Goodwill and intangible assets Goodwill is the residual amount that results when the purchase price of an acquired business exceeds the value allocated to the tangible and intangible assets, less liabilities assumed, based on their fair values. Goodwill is not first not Intangible assets acquired in a business acquisition are recorded at their fair value. In subsequent reporting periods, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recorded on a straight-line basis over the expected useful life of the intangible asset. At each reporting date, the carrying value of intangible assets are reviewed for indicators of impairment. If such an indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. For purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generate cash flows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (“CGU”). If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount and the impairment loss is recognized in profit or loss. The recoverable amount of an asset or CGU is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted at a rate that reflects current market assessments of the time value of money and the risks specific to the assets. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. When an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount so that the increased carrying amount does not no The Bank develops proprietary cybersecurity, banking and financial technology. Any research or early-stage scoping activities are expensed as incurred in the period. The Bank recognizes internally generated intangible assets on the development of proprietary technology when it has determined there is technical feasibility and resources to complete a product, demonstrated an existence of an established market for the product, and support to generate future revenues or derive future economic benefits from the product. h) Income taxes: Current income taxes are calculated based on taxable income for the reporting period. Taxable income differs from accounting income because of differences in the inclusion and deductibility of certain components of income which are established by taxation authorities. Current income taxes are measured at the amount expected to be recovered or paid using statutory tax rates at the reporting period end. The Bank follows the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities arise from temporary differences between financial statement carrying values and the respective tax base of those assets and liabilities. Deferred income tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to taxable income in the years when temporary differences are expected to be recovered or settled. Deferred income tax assets are recognized in the Consolidated Financial Statements to the extent that it is probable that the Bank will have sufficient taxable income to enable the benefit of the deferred income tax asset to be realized. Unrecognized deferred income tax assets are reassessed for recoverability at the end of each reporting period. Current and deferred income taxes are recorded in income for the period, except to the extent that the tax arose from a transaction that is recorded either in Other Comprehensive Income or Equity, in which case the income tax on the transaction will also be recorded either in Other Comprehensive Income or Equity. Accordingly, current and deferred income taxes are presented in the Consolidated Financial Statements as a component of income, or as a component of Other Comprehensive Income. i) Employee benefits: i) Short-term benefits: Short-term employee benefit obligations are recognized as employees render their services and are measured on an undiscounted basis. A liability is recognized for the amount expected to be paid under a short-term cash bonus plan if the Bank has an obligation to make such payments as a result of past service provided by the employee and the obligation can be estimated reliably. ii) Share-based payment transactions: Equity-settled stock options Employee stock options are measured using the Black-Scholes pricing model which is used to estimate the fair value of the options at the date of grant. Inputs to the Black-Scholes model include the closing share price on the grant date, the exercise price, the expected option life, the expected dividend yield, the expected volatility and the risk-free interest rate. Once the expected option life is determined, it is used in formulating the estimates of expected volatility and the risk-free rate. Expected future volatility is estimated using a historical volatility look-back period that is consistent with the expected life of the option. The fair value of options which vest immediately are recognized in full as of the grant date, whereas the fair value of options which vest over time are recognized over the vesting period using the graded method which incorporates management’s estimates of the options which are not The fair value of stock options granted is recorded in salaries and benefits expense in the Consolidated Statements of Income and in Contributed Surplus in the Consolidated Balance Sheets. When options are exercised, the consideration received and the estimated fair value previously recorded in Contributed Surplus is recorded as Share Capital. The Bank’s stock option plan is described in note 13. j) Share capital: The Bank’s share capital consists of common shares and preferred shares. Costs directly incurred with raising new share capital are charged against equity. Other costs are expensed as incurred. k) Contributed surplus: Contributed surplus consists of the fair value of stock options granted since inception, less amounts reversed for exercised stock options. If granted options vest and then subsequently expire or are forfeited, no l) Leases: At inception of a contract, the Bank assesses whether a contract is, or contains, a lease arrangement based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Bank recognizes a right-of-use asset and a lease obligation at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset and/or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of useful life of the right-of-use asset or the lease term using the straight-line method as this methodology most closely reflects the expected pattern of consumption of the associated future economic benefits. The lease term includes periods covered by an option to extend if there is reasonable certainty that the Bank will exercise that option. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease obligation. The lease obligation is measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Bank’s estimate of the amount expected to be payable under a residual value guarantee, or if the Bank changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease obligation is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or the remeasured amount is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Bank elects to apply the practical expedient to account for leases for which the lease term ends within 12 m) Foreign currency translation: Transactions in foreign currencies are translated into the respective functional currencies of the Bank and its subsidiaries at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the exchange rate at the reporting date. Foreign currency differences are recognized in profit and loss. Investments classified as fair value through other comprehensive income denominated in a foreign currency are translated into Canadian dollars at the exchange rate at the reporting date. All resulting changes are recognized in other comprehensive income (loss). Foreign operations The assets and liabilities of Digital Boundary Group Inc., a US operation of the Bank, has a functional currency other than the Canadian dollar, and is translated into Canadian dollars at the exchange rate at the reporting date. The income and expenses of this operation are translated into Canadian dollars at the exchange rate at the date of transaction and the foreign currency differences are recognized in other comprehensive income (loss). All other US operations are recognized as having functional currency based on the Canadian dollar. n) Future accounting standard pronouncements: The following accounting standards amendments issues by the IASB will be effective for the Bank’s fiscal year beginning on November 1, 2022: i) Amendments to IAS 16, Property, plant and equipment proceeds before intended use ii) Amendments to IAS 37, Provisions, contingent liabilities and contingent assets - Onerous contracts, cost of fulfilling a contract iii) The IASB provided a number of non-urgent but required amendments to various IFRS Standards under the issuance of its Annual Improvements to IFRS Standards 2018 2020. a. Amendments to IAS 1 First-time Adoption of International Financial Reporting Standards, 1 first b. Amendments to IFRS 9 Financial instruments, “10 These amendments noted above are not |
Note 4 - Cash
Note 4 - Cash | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of cash and cash equivalents [text block] | 4. Cash: Cash is comprised of deposits with regulated financial institutions. |
Note 5 - Securities
Note 5 - Securities | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of financial assets [text block] | 5. Securities: As at October 31, 2022, 2021 $nil November 8, 2022 May 25, 2023. November 8, 2022. |
Note 6 - Loans, Net of Allowanc
Note 6 - Loans, Net of Allowance for Credit Losses | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of loans and advances to customers [text block] | 6. Loans, net of allowance for credit losses: The Bank organizes its lending portfolio into the following four The Point-of-Sale Loans and Leases ( POS Financing ) The Commercial Real Estate Mortgages ( CRE Mortgages ) The Commercial Real Estate Loans ( CRE Loans ) The Public Sector and Other Financing ( PSOF ) a) Portfolio analysis: (thousands of Canadian dollars) 2022 2021 Point of sale loans and leases $ 2,220,894 $ 1,279,576 Commercial real estate mortgages 710,369 757,576 Commercial real estate loans 13,165 26,569 Public sector and other financing 35,452 32,587 2,979,880 2,096,308 Allowance for credit losses (1,904 ) (1,453 ) Accrued interest 14,702 8,195 Total loans, net of allowance for credit losses $ 2,992,678 $ 2,103,050 The following table provides a summary of loan amounts, ECL allowance amounts, and expected loss (“EL”) rates by lending asset category: As at October 31, 2022 As at October 31, 2021 (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Point of sale loans and leases $ 2,215,388 $ 5,227 $ 279 $ 2,220,894 $ 1,277,011 $ 2,565 $ - $ 1,279,576 ECL allowance 545 - - 545 275 - - 275 EL % 0.02 % 0.00 % 0.00 % 0.02 % 0.02 % 0.00 % 0.00 % 0.02 % Commercial real estate mortgages $ 599,113 $ 111,256 $ - $ 710,369 $ 694,869 $ 62,707 $ - $ 757,576 ECL allowance 1,150 137 - 1,287 980 134 - 1,114 EL % 0.19 % 0.12 % 0.00 % 0.18 % 0.14 % 0.21 % 0.00 % 0.15 % Commercial real estate loans $ 13,165 $ - $ - $ 13,165 $ 26,569 $ - $ - $ 26,569 ECL allowance 54 - - 54 45 - - 45 EL % 0.41 % 0.00 % 0.00 % 0.41 % 0.17 % 0.00 % 0.00 % 0.17 % Public sector and other financing $ 35,273 $ 179 $ - $ 35,452 $ 32,507 $ 80 $ - $ 32,587 ECL allowance 17 1 - 18 16 3 - 19 EL % 0.05 % 0.56 % 0.00 % 0.05 % 0.05 % 0.00 % 0.00 % 0.06 % Total loans $ 2,862,939 $ 116,662 $ 279 $ 2,979,880 $ 2,030,956 $ 65,352 $ - $ 2,096,308 Total ECL allowance 1,766 138 - 1,904 1,316 137 - 1,453 Total EL % 0.06 % 0.12 % 0.00 % 0.06 % 0.06 % 0.21 % 0.00 % 0.07 % The Bank’s maximum exposure to credit risk is the carrying value of its financial assets. The Bank holds security against the majority of its loans in the form of either mortgage interests over property, other registered securities over assets, guarantees and holdbacks on loan and lease receivables included in the POS Financing portfolio (note 11 Impairment Allowance for Credit Losses As set out previously, the Bank must maintain an allowance for expected credit losses that is adequate, in management’s opinion, to absorb all credit related losses in the Bank’s lending and treasury portfolios. Under IFRS 9 no Assessment of significant increase in credit risk ( SICR ) At each reporting date, the Bank assesses whether or not SICR is a function of the loan’s internal risk rating assignment, internal watchlist status, loan review status and delinquency status which are updated as necessary in response to changes including, but not Quantitative models may not may may Expected credit loss model - Estimation of expected credit losses Expected credit losses are an estimate of a loan’s expected cash shortfalls discounted at the effective interest rate, where a cash shortfall is the difference between the contractual cash flows that are due to the Bank and the cash flows that the Bank actually expects to receive. Forward-Looking Information The Bank incorporates the impact of future economic conditions, or more specifically forward-looking information into the estimation of expected credit losses at the credit risk parameter level. This is accomplished via the credit risk parameter models and proxy datasets that the Bank utilizes to develop PD and LGD term structure forecasts for its loans. The Bank has sourced credit risk modeling systems and forecast macroeconomic scenario data from Moody’s Analytics, a third not third The Bank utilizes macroeconomic indicator data derived from multiple macroeconomic scenarios in order to mitigate volatility in the estimation of expected credit losses, as well as to satisfy the IFRS 9 The macroeconomic indicator data utilized by the Bank for the purpose of sensitizing PD and LGD term structure data to forward economic conditions include, but are not Key assumptions driving the base case macroeconomic forecast trends include: the Bank of Canada (“BoC”) continuing to tighten monetary policy with the overnight rate reaching 4.5% 2023; 2023, 2023 not 19 Management developed ECL estimates using credit risk parameter term structure forecasts sensitized to individual baseline, upside and downside forecast macroeconomic scenarios, each weighted at 100%, October 31, 2022 Expected Credit Loss Sensitivity: The following table presents the sensitivity of the Bank’s estimated ECL to a range of individual macroeconomic scenarios, that in isolation may not October 31, 2022: (thousands of Canadian dollars) Reported 100 % 100 % 100 % ECL Upside Baseline Downside Allowance for expected credit losses $ 1,904 $ 1,350 $ 1,786 $ 2,474 Variance from reported ECL (554 ) (118 ) 570 Variance from reported ECL (%) (29% ) (6% ) 30 % The ECL model requires the recognition of credit losses based on 12 1 2 3 The determination of a significant increase in credit risk is a function primarily of loan product type and the associated risk profile of same. The principal factors considered in making this determination include relative changes in the Bank’s internal risk rating assignment, the loan’s watchlist status, and the loan’s delinquency status. Notwithstanding the above, the assessment of a significant increase in credit risk will require experienced credit judgement. b) Allowance for credit losses: The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the year ended October 31, 2022: (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Point-of-sale loans and leases Balance at beginning of period $ 275 $ - $ - $ 275 Transfer in (out) to Stage 1 91 (91 ) - - Transfer in (out) to Stage 2 (186 ) 186 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 365 (95 ) - 270 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 270 - - 270 Write-offs - - - - Recoveries - - - - Balance at end of period $ 545 $ - $ - $ 545 Commercial real estate mortgages Balance at beginning of period $ 980 $ 134 $ - $ 1,114 Transfer in (out) to Stage 1 75 (75 ) - - Transfer in (out) to Stage 2 (129 ) 129 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 74 (29 ) - 45 Loan originations 286 - - 286 Derecognitions and maturities (136 ) (22 ) - (158 ) Provision for (recovery of) credit losses 170 3 - 173 Write-offs - - - - Recoveries - - - - Balance at end of period $ 1,150 $ 137 $ - $ 1,287 Commercial real estate loans Balance at beginning of period $ 45 $ - $ - $ 45 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 9 - - 9 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 9 - - 9 Write-offs - - - - Recoveries - - - - Balance at end of period $ 54 $ - $ - $ 54 Public sector and other financing Balance at beginning of period $ 16 $ 3 $ - $ 19 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 2 (2 ) - - Loan originations - - - - Derecognitions and maturities (1 ) - - (1 ) Provision for (recovery of) credit losses 1 (2 ) - (1 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 17 $ 1 $ - $ 18 Total balance at end of period $ 1,766 $ 138 $ - $ 1,904 The following table provides a reconciliation of the Bank’s ECL allowance by lending asset category for the year ended October 31, 2021: (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Point of sale loans and leases Balance at beginning of period $ 215 $ - $ - $ 215 Transfer in (out) to Stage 1 89 (89 ) - - Transfer in (out) to Stage 2 (178 ) 178 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 149 (89 ) - 60 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 60 - - 60 Write-offs - - - - Recoveries - - - - Balance at end of period $ 275 $ - $ - $ 275 Commercial real estate mortgages Balance at beginning of period $ 1,174 $ 192 $ - $ 1,366 Transfer in (out) to Stage 1 93 (93 ) - - Transfer in (out) to Stage 2 (124 ) 124 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (425 ) (22 ) - (447 ) Loan originations 421 - - 421 Derecognitions and maturities (159 ) (67 ) - (226 ) Provision for (recovery of) credit losses (194 ) (58 ) - (252 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 980 $ 134 $ - $ 1,114 Commercial real estate loans Balance at beginning of period $ 137 $ - $ - $ 137 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (92 ) - - (92 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (92 ) - - (92 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 45 $ - $ - $ 45 Public sector and other financing Balance at beginning of period $ 57 $ - $ - $ 57 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (35 ) - - (35 ) Loan originations - 3 - 3 Derecognitions and maturities (6 ) - (116 ) (122 ) Provision for (recovery of) credit losses (41 ) 3 (116 ) (154 ) Write-offs - - - - Recoveries - - 116 116 Balance at end of period $ 16 $ 3 $ - $ 19 Total balance at end of period $ 1,316 $ 137 $ - $ 1,453 c) Maturities and yields: (thousands of Canadian dollars) Within 3 months to 1 year to 2 years to Over 2022 2021 Floating 3 months 1 year 2 years 5 years 5 years Total Total Total loans $ 670,350 $ 106,262 $ 501,818 $ 238,460 $ 1,050,292 $ 412,698 $ 2,979,880 $ 2,096,308 Average effective yield 8.29 % 4.57 % 5.42 % 4.93 % 4.95 % 5.58 % 5.85 % 4.52 % Average effective yields are based on book values and contractual interest rates, adjusted for the amortization of any deferred income and expenses. d) Impaired loans: At October 31, 2022, one October 31, 2021 - $nil November 1, 2022. |
Note 7 - Other Assets
Note 7 - Other Assets | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of other assets [text block] | 7. Other assets: (thousands of Canadian dollars) 2022 2021 Accounts receivable $ 3,774 $ 2,643 Prepaid expenses and other (note 7a) 16,391 12,699 Property and equipment (note 8) 6,868 7,075 Right-of-use assets 4,122 4,817 Deferred income tax asset (note 14) 2,128 2,931 Investment (note 7b) 953 953 Goodwill (note 7c) 5,754 5,754 Intangible assets 3,185 3,641 $ 43,175 $ 40,513 For the year ended October 31, 2022, 2021 2021 a) The Bank has developed internally proprietary cybersecurity, banking and financial technology products. Costs associated with the development of these products have been capitalized in accordance with IAS 38 Intangible Assets October 31, 2022, 2021 b) In February 2021, not c) Goodwill relates to the Bank’s acquisition of Digital Boundary Group (note 23 not |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of property, plant and equipment [text block] | 8. Property and equipment: (thousands of Canadian dollars) 2022 2021 Cost $ 17,465 $ 16,884 Accumulated amortization (10,597 ) (9,809 ) $ 6,868 $ 7,075 None of the Bank’s property and equipment is subject to title restrictions, nor is any pledged as security for any of the Bank’s liabilities. Total amortization expense recorded for property and equipment for the year ended October 31, 2022 2021 |
Note 9 - Deposits
Note 9 - Deposits | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of deposits from banks [text block] | 9. Deposits: (thousands of Canadian dollars) Maturity period Demand/ Within 3 months to 1 year to 2 years to Over Accrued 2022 2021 Floating 3 months 1 year 2 years 5 years 5 years Interest Total Total Total deposits $ 507,879 $ 275,220 $ 904,664 $ 529,806 $ 412,739 $ 331 $ 26,901 $ 2,657,540 $ 1,853,204 Average effective interest rate 2.81 % 2.01 % 2.99 % 2.90 % 2.57 % 5.07 % 2.74 % 1.19 % Average effective interest rates are based on book values and contractual interest rates. |
Note 10 - Subordinated Notes Pa
Note 10 - Subordinated Notes Payable | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of borrowings [text block] | 10. Subordinated notes payable: (thousands of Canadian dollars) 2022 2021 Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 19), effective interest rate of 10.41%, maturing March 2029. $ 4,908 $ 4,898 Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of USD $75.0 million, effective interest rate of 5.38%, maturing May 2031. 100,043 90,374 $ 104,951 $ 95,272 On April 30, 2021 April 30, 2021. May 1 November 1 November 1, 2021, May 1, 2026. not 3 February 1, May 1, August 1 November 1 August 1, 2026, May 1, 2031 May 1, 2026, may, not 30 60 |
Note 11 - Other Liabilities
Note 11 - Other Liabilities | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of other liabilities [text block] | 11. Other liabilities: (thousands of Canadian dollars) 2022 2021 Accounts payable and other $ 7,662 $ 6,893 Current income tax liability 5,797 2,949 Deferred income tax liability (note 14) 786 898 Lease obligations 4,471 5,113 Cash collateral and amounts held in escrow 8,006 7,887 Cash reserves on loan and lease receivables 126,110 110,764 $ 152,832 $ 134,504 Lease obligations reflect the Bank’s liabilities for right-of-use assets which capture the Bank’s multiple leased premises (note 3 not The current leasing arrangements associated with these lease obligations expire between October 2025 December 2045 three five |
Note 12 - Share Capital
Note 12 - Share Capital | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of classes of share capital [text block] | 12. Share Capital: a) Authorized: The Bank is authorized to issue an unlimited number of voting common shares with no par value. The Bank is authorized to issue an unlimited number of Series 1 b) Issued and outstanding: (thousands of Canadian dollars) 2022 2021 Shares Amount Shares Amount Common shares: Balance, beginning of the year 27,441,082 $ 227,674 21,123,559 $ 152,612 Issued during the year - - 6,325,000 75,101 Cancelled during the year (195,300 ) (1,692 ) (7,477 ) (39 ) Outstanding, end of year 27,245,782 $ 225,982 27,441,082 $ 227,674 Series 1 preferred shares: Outstanding, beginning and end of year 1,461,460 $ 13,647 1,461,460 $ 13,647 Series 3 preferred shares: Balance, beginning of the year - $ - 1,681,320 $ 15,690 Redemption of preferred shares - - (1,681,320 ) (15,690 ) Outstanding, end of year - $ - - $ - Total share capital $ 239,629 $ 241,321 Common shares On August 5, 2022, September 21, 2022, may 9.54% not The Bank was eligible to make purchases commencing on August 17, 2022 August 16, 2023, may no For the year ended October 31, 2022, On September 21, 2021 September 29, 2021, On October 7, 2021, not January 31, 2017. Series 1 The Bank is authorized to issue an unlimited number of Series 1 five The holders of the Series 1 October 31, 2024. five five The Bank maintains the right to redeem, subject to the approval of OSFI, up to all of the outstanding Series 1 October 31, 2024 October 31 five not 1 2 2 90 Upon the occurrence of a trigger event (as defined by OSFI), each Series 1 2 ten Series 3 On April 30, 2021, 3 |
Note 13 - Stock-based Compensat
Note 13 - Stock-based Compensation | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of share-based payment arrangements [text block] | 13. Stock-based compensation: Equity-settled stock options: The Bank has a stock option plan for its employees and officers. Options are granted at an exercise price set at the closing market price of the Bank’s common shares on the day preceding the date on which the option is granted and are exercisable within five third first third second one third third 2022 2021 Weighted Weighted Number of average Number of average options exercise price options exercise price Outstanding, beginning of period 40,000 $ 7.00 42,017 $ 10.73 Granted 971,707 15.90 - - Exercised - - - - Forfeited/cancelled (45,941 ) 15.90 - - Expired - - (2,017 ) 10.73 Outstanding, end of period 965,766 $ 15.53 40,000 $ 7.00 For the year ended October 31, 2022, 2021 $nil October 31, 2022, October 2023. |
Note 14 - Income Taxes
Note 14 - Income Taxes | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of income tax [text block] | 14. Income taxes: Income taxes, including both the current and deferred portions, vary from the amounts that would be computed by applying the aggregated statutory federal tax rates and provincial tax rates of 27% ( 2021 (thousands of Canadian dollars) 2022 2021 Income before income taxes $ 32,548 $ 30,789 Income tax rate 27 % 27 % Expected income tax provision 8,788 8,313 Tax rate differential 172 (83 ) Unrecognized deferred tax asset 411 159 Other permanent differences 519 20 Income taxes $ 9,890 $ 8,409 Income taxes is comprised of the following: (thousands of Canadian dollars) 2022 2021 Current income taxes $ 9,199 $ 4,319 Deferred income taxes 691 4,090 Income taxes $ 9,890 $ 8,409 The components of the recognized deferred income tax assets (liabilities) and related changes, as recognized in net income, equity or accumulated comprehensive income, are as follows: (thousands of Canadian dollars) Recognized Recognized November 1, in net directly to October 31, 2021 income equity 2022 Allowance for credit losses $ 388 $ 120 $ - $ 508 Loss carry forwards 338 (338 ) - - Share issue and financing costs 1,373 (464 ) - 909 Deposit commissions (981 ) (246 ) - (1,227 ) Intangibles assets (898 ) 112 - (786 ) Deferred loan fees 757 (99 ) - 658 Other 1,056 224 - 1,280 Net deferred income tax assets $ 2,033 $ (691 ) $ - $ 1,342 (thousands of Canadian dollars) Recognized Recognized Recognized November 1, in net on acquisition directly to October 31, 2020 income of DBG equity 2021 Allowance for credit losses $ 474 $ (86 ) $ - $ - $ 388 Loss carry forwards 4,166 (3,828 ) - - 338 Share issue and financing costs 87 (590 ) - 1,876 1,373 Deposit commissions (865 ) (116 ) - - (981 ) Intangibles assets - - (898 ) - (898 ) Deferred loan fees 526 231 - - 757 Other 757 299 - - 1,056 Net deferred income tax assets $ 5,145 $ (4,090 ) $ (898 ) $ 1,876 $ 2,033 The net deferred taxes are comprised of: (thousands of Canadian dollars) 2022 2021 Deferred tax assets $ 2,128 $ 2,931 Deferred tax liabilities (786 ) (898 ) Net deferred income tax assets $ 1,342 $ 2,033 A deferred tax asset in the amount of $692,000 ( 2021 $nil The Bank is subject to Part VI.1 40% VI.1 2021 At October 31, 2022, 2021 no 2021 not In addition, the Bank has approximately $9.5 million ( 2021 may 2021 not A deferred tax liability on taxable temporary differences of approximately $3.9 million ( 2021 not not |
Note 15 - Per Share Amounts
Note 15 - Per Share Amounts | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of earnings per share [text block] | 15. Per share amounts: Basic and diluted income per common share (thousands of Canadian dollars) 2022 2021 Net income $ 22,658 $ 22,380 Preferred share dividends paid (988 ) (1,578 ) Net income available to common shareholders 21,670 20,802 Weighted average number of common shares outstanding 27,425,479 21,752,930 Basic and diluted income per common share: $ 0.79 $ 0.96 The Series 1 not no |
Note 16 - Nature and Extent of
Note 16 - Nature and Extent of Risks Arising from Financial Instruments | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of nature and extent of risks arising from financial instruments [text block] | 16. Nature and extent of risks arising from financial instruments: Risk management involves the identification, ongoing assessment, managing and monitoring of material risks that could adversely affect the Bank. The Bank is exposed to credit risk, liquidity risk, and market risks. Senior management is responsible for establishing the framework for identifying risks and developing appropriate risk management policies and procedures. The Bank’s Board of Directors, either directly or indirectly through its committees, reviews and approves corporate policies, including specific reporting procedures. This enables them to monitor ongoing compliance with policies, delegate limits and review management’s assessment of risk in its material risk taking activities. The Bank’s Chief Internal Auditor provides a periodic review of policies and procedures to ensure that they are appropriate, effective and being followed and that adequate controls are in place in order to mitigate risk to acceptable levels. The Chief Internal Auditor reports directly to the Audit Committee of the Board of Directors. In addition, the Bank has an ongoing risk and compliance management program with the Chief Compliance Officer, who reports directly to the Board of Directors, and the Chief Risk Officer, who reports directly to the Risk Oversight Committee. Credit Risk Credit risk is the risk of loss associated with a borrower, guarantor, or counterparty’s inability or unwillingness to fulfill its contractual obligations. The Bank is exposed to credit risk primarily as a result of its lending activities but also, from time to time, as a result of investing in securities. The Bank manages its lending activity credit risk using policies that have been recommended by the Treasurer and the Chief Risk Officer to the Risk Oversight Committee, who then recommends the policies to the Board of Directors for approval. These policies consist of approval procedures and limits on loan amounts, portfolio concentration, geographic concentration, industry concentration, asset category, loans to any one The Bank manages credit risk associated with securities included in its Treasury portfolio by applying policies that have been recommended by the Chief Credit Officer to the Risk Oversight Committee, which then recommends the policies to the Board of Directors for approval. These policies consist of approval procedures and restrictions in the selection of security dealers, restrictions in the nature of securities selected, and in setting securities portfolio concentration limits. The Risk Oversight Committee reviews these policies on an ongoing basis. The Risk Oversight Committee, comprised entirely of independent directors, performs the following functions related to credit risk: ● Recommends policies governing management of credit risks to the Board of Directors for approval and reviews credit risk policies on an ongoing basis to ensure they are prudent and appropriate given possible changes in market conditions and corporate strategy. ● Concurs with credits exceeding the levels delegated to management, prior to commitment. ● Reviews, on a regular basis, watchlist accounts, impaired loans and accounts that have gone into arrears and expected credit loss analysis on a quarterly basis. See note 6 There was no Liquidity Risk Liquidity risk is the risk that the Bank is unable to meet the demand for cash to fund obligations as they come due. The Bank is exposed to liquidity risk as a result of timing differences in the cash flows of its lending activities, security investment activities and deposit taking activities. The Bank has established policies to ensure that its cash outflows and inflows are closely matched and that its sources of deposits are diversified between funding sources and over a wide geographic area. The Risk Oversight Committee recommends policies governing management of liquidity risk to the Board for approval and reviews liquidity policies on an ongoing basis. It receives and reviews quarterly securities portfolio reports and liquidity risk reports from management relating to its liquidity position. Additionally, an Asset Liability Committee, consisting of members of senior management, monitors liquidity risk, reviews compliance with policies and discusses strategies in this area. See note 17 no Market Risk Market risk is the risk of a negative impact on the balance sheet and/or income statement resulting from changes or volatility in market factors such as foreign exchange risk, interest rates, or market prices. The Risk Oversight Committee is charged with recommending policies that govern market risk to its Board of Directors for approval and with reviewing the policies on an ongoing basis. Foreign exchange risk or currency risk is the risk that transacting in any currency apart from the Bank’s base currency can result in gains or losses due to currency fluctuations resulting in the possibility that a foreign denominated transaction’s value may Interest rate risk is the risk that a movement in interest rates could negatively impact spread, net interest income and the economic value of assets, liabilities and shareholders’ equity. The Bank manages interest rate risk by employing a number of methods including income simulation analysis and interest rate sensitivity gap and duration analysis. Management prepares regular reports to the Board to allow for ongoing monitoring of the Bank’s interest rate risk position. The Asset Liability Committee reviews the results of these analyses on a monthly basis and monitors compliance with limits set by corporate policy. 16. Nature and extent of risks arising from financial instruments – continued: The management of interest rate risk also includes stress testing the Bank’s financial assets and liabilities to various standard and non-standard interest rate scenarios. Standard scenarios that are considered include a 100 The results of an analysis of the Bank’s sensitivity to an increase or decrease in market interest rates, assuming no Interest Rate Position (thousands of Canadian dollars) 2022 2021 Increase 100 bps Decrease 100 bps Increase 100 bps Decrease 100 bps Increase (decrease): Sensitivity of projected net interest income during a 12 month period $ 4,304 $ (4,261 ) $ 4,147 $ (3,220 ) Duration difference between assets and liabilities (months) 1.4 2.3 There was no As at October 31, 2022 October 31, 2021 not |
Note 17 - Interest Rate Risk an
Note 17 - Interest Rate Risk and Liquidity Risk | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of how entity manages liquidity risk [text block] | 17. Interest rate risk and liquidity risk: The Bank is exposed to interest rate risk as a consequence of the mismatch, or gap, between assets and liabilities scheduled to mature or reset on particular dates. The gaps, which existed at October 31, 2022 (thousands of Canadian dollars) Floating Within 3 months to 1 year to 2 years to Over Non-interest rate 3 months 1 year 2 years 5 years 5 years rate sensitive Total Assets Cash $ 88,581 $ - $ - $ - $ - $ - $ - $ 88,581 Effective rate 2.60 % Securities - 121,871 19,693 - - - - 141,564 Effective rate 3.06 % 2.81 % Loans 670,350 106,262 501,818 238,460 1,050,292 412,698 12,798 2,992,678 Effective rate 8.29 % 4.57 % 5.42 % 4.93 % 4.95 % 5.58 % Other - - - - - - 43,175 43,175 Effective rate Total Assets $ 758,931 $ 228,133 $ 521,511 $ 238,460 $ 1,050,292 $ 412,698 $ 55,973 $ 3,265,998 Liabilities Deposits $ 507,879 $ 275,220 $ 904,664 $ 529,806 $ 412,739 $ 331 $ 26,901 $ 2,657,540 Effective rate 2.81 % 2.01 % 2.99 % 2.90 % 2.57 % 5.07 % Subordinated notes - - - - - 104,951 - 104,951 Effective rate 5.62 % Other 134,116 - - - - - 18,716 152,832 Effective rate 3.17 % Equity - - - - 13,647 - 337,028 350,675 Effective rate 6.77 % Total liabilities and equity $ 641,995 $ 275,220 $ 904,664 $ 529,806 $ 426,386 $ 105,282 $ 382,645 $ 3,265,998 October 31, 2022 gap $ 116,936 $ (47,087 ) $ (383,153 ) $ (291,346 ) $ 623,906 $ 307,416 $ (326,672 ) $ - Cumulative $ 116,936 $ 69,849 $ (313,304 ) $ (604,650 ) $ 19,256 $ 326,672 $ - $ - October 31, 2021 gap $ 316,829 $ (209,462 ) $ (152,523 ) $ (40,897 ) $ 327,480 $ 58,561 $ (299,988 ) $ - Cumulative $ 316,829 $ 107,367 $ (45,156 ) $ (86,053 ) $ 241,427 $ 299,988 $ - $ - |
Note 18 - Fair Value of Financi
Note 18 - Fair Value of Financial Instruments | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of fair value of financial instruments [text block] | 18. Fair value of financial instruments: The amounts set out in the table below represent the fair value of the Bank’s financial instruments: (thousands of Canadian dollars) 2022 2021 Book Value Fair Value Book Value Fair Value Assets Cash $ 88,581 $ 88,581 $ 271,523 $ 271,523 Securities 141,564 141,564 - - Loans 2,992,678 2,963,676 2,103,050 2,118,636 Other financial assets 953 953 953 953 Liabilities Deposits $ 2,657,540 $ 2,561,421 $ 1,853,204 $ 1,860,332 Subordinated notes payable 104,951 107,368 95,272 97,910 Other financial liabilities 146,249 146,249 130,657 130,657 Fair values are based on management’s best estimates of market conditions and valuation policies at a certain point in time. The estimates are subjective and involve particular assumptions and matters of judgment and as such, may not not not The fair value amounts have been determined using the following valuation methods and assumptions: • For securities, the combined book value and accrued interest approximates fair value. • The fair value of loans is based on net discounted cash flows using market interest rates and applicable credit spreads for borrowers. • The fair value of deposits is determined based on discounted cash flows using market interest rates. • The fair value of subordinated notes payable is determined based on discounted cash flows using current market interest rates. • The investment in Stablecorp which is measured at fair value at each reporting period with changes in value reflected in the Bank’s other comprehensive income. The estimated fair value of the Stablecorp investment is classified as Level 3 not • The fair value of other financial assets is approximately equal to their book value due to the short-term nature of the instruments. • The fair value of other financial liabilities is approximately equal to their book value due to the short-term nature of the instruments except for lease obligations. However, the fair value of the Bank’s lease obligations is approximately equal to their book value given that there has been no |
Note 19 - Related Party Transac
Note 19 - Related Party Transactions | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of related party [text block] | 19. Related party transactions: The Bank’s Board of Directors and Senior Executive Officers represent key management personnel and the Bank has issued loans and advances to some of these individuals. At October 31, 2022, 2021 2021 October 31, 2022 2021 2021 $nil October 31, 2022 2021. In March 2019, March 2029 ( 10 Total compensation expense recognized for key management personnel for the year ended October 31, 2022, 2021 2021 $nil |
Note 20 - Commitments and Conti
Note 20 - Commitments and Contingencies | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of commitments and contingent liabilities [text block] | 20. Commitments and contingencies: a) Credit commitments: The amount of credit related commitments represents the maximum amount of additional credit that the Bank could be obliged to extend. Under certain circumstances, the Bank may not one (thousands of Canadian dollars) 2022 2021 Loan commitments $ 382,851 $ 296,248 Letters of credit 60,273 46,462 $ 443,124 $ 342,710 b) Pledged assets: In the ordinary course of business, assets are pledged against the off-balance sheet letters of credit in the amount of $11.1 million ( 2021 |
Note 21 - Capital Management
Note 21 - Capital Management | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of objectives, policies and processes for managing capital [text block] | 21. Capital management: a) Overview: The Bank’s policy is to maintain a strong capital base so as to retain investor, creditor and market confidence as well as to support the future growth and development of the business. The impact of the level of capital held on shareholders’ return is an important consideration and the Bank recognizes the need to maintain a balance between the higher returns that may may The goal is to maintain adequate regulatory capital for the Bank to be considered well capitalized, protect consumer deposits and provide capacity to support organic growth as well as to capitalize on strategic opportunities that do not 1 1 2 The Bank monitors its capital adequacy and related capital ratios on a daily basis and has policies setting internal targets and thresholds for its capital ratios. These capital ratios consist of the leverage ratio and the risk-based capital ratios. The Bank makes use of the Standardized Approach for credit risk as prescribed by OSFI, and therefore, may 2 As a result of the onset of COVID- 19 second 2020 CET1 2020 2022 CET1 1 2 1 2 three January 31, 2020, 70% 2020, 50% 2021 25% 2022. October 31, 2022 2021, no CET1 On April 30, 2021, 3 On April 30, 2021, April 30, 2021. May 1 November 1 November 1, 2021, May 1, 2026. not 3 February 1, May 1, August 1 November 1 August 1, 2026, 2 2.2 On September 21, 2021 September 29, 2021, 12 October 31, 2022, no b) Risk-Based Capital Ratios: The Basel Committee on Banking Supervision has published the Basel III rules on capital adequacy and liquidity (“Basel III”). OSFI requires that all Canadian banks must comply with the Basel III standards on an “all-in” basis for the purpose of determining their risk-based capital ratios. Required minimum regulatory capital ratios are a 7.0% Common Equity Tier 1 “CET1” 1 OSFI also requires banks to measure capital adequacy in accordance with guidelines for determining risk adjusted capital and risk-weighted assets including off-balance sheet credit instruments as specified in the Basel III regulations. Based on the deemed credit risk for each type of asset, both on and off balance sheet assets of the Bank are assigned a weighting ranging between 0% 150% The Bank’s risk-based capital ratios are calculated as follows: (thousands of Canadian dollars) 2022 2022 2021 "Transitional" "All in" "All in" Common Equity Tier 1 (CET1) capital Directly issued qualifying common share capital $ 225,982 $ 225,982 $ 227,674 Contributed surplus 1,612 1,612 145 Retained earnings 109,335 109,335 90,644 Accumulated other comprehensive income 99 99 (4 ) CET1 before regulatory adjustments 337,028 337,028 318,459 Regulatory adjustments applied to CET1 (11,371 ) (11,371 ) (12,751 ) Common Equity Tier 1 capital $ 325,657 $ 325,657 $ 305,708 Additional Tier 1 capital Directly issued qualifying Additional Tier 1 instruments $ 13,647 $ 13,647 $ 13,647 Total Tier 1 capital $ 339,304 $ 339,304 $ 319,355 Tier 2 capital Directly issued capital instruments $ 107,367 $ 107,367 $ 97,910 Tier 2 capital before regulatory adjustments 107,367 107,367 97,910 Eligible stage 1 and stage 2 allowance 1,904 1,904 1,453 Total Tier 2 capital $ 109,271 $ 109,271 $ 99,363 Total regulatory capital $ 448,575 $ 448,575 $ 418,718 Total risk-weighted assets $ 2,714,902 $ 2,714,902 $ 2,013,544 Capital ratios CET1 capital ratio 12.00 % 12.00 % 15.18 % Tier 1 capital ratio 12.50 % 12.50 % 15.86 % Total capital ratio 16.52 % 16.52 % 20.80 % As at October 31, 2022 2021, c) Leverage ratio The leverage ratio, which is prescribed under the Basel III Accord, is a supplementary measure to the risk-based capital requirements and is defined as the ratio of Tier 1 (thousands of Canadian dollars) 2022 2022 2021 "Transitional" "All-in" "All-in" On-balance sheet assets $ 3,265,998 $ 3,265,998 $ 2,415,086 Asset amounts adjusted in determining the Basel III Tier 1 capital (11,371 ) (11,371 ) (12,751 ) Total on-balance sheet exposures 3,254,627 3,254,627 2,402,335 Off-balance sheet exposure at gross notional amount $ 443,124 $ 443,124 $ 342,710 Adjustments for conversion to credit equivalent amount (251,101 ) (251,101 ) (210,065 ) Off-balance sheet exposures 192,023 192,023 132,645 Tier 1 capital 339,304 339,304 319,355 Total exposures 3,446,650 3,446,650 2,534,980 Leverage ratio 9.84 % 9.84 % 12.60 % As at October 31, 2022 2021, |
Note 22 - Operating Segments
Note 22 - Operating Segments | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of entity's operating segments [text block] | 22. Operating Segments: The Bank has established two reportable operating segments, those being Digital Banking and DRTC. The two Digital Banking DRTC (cybersecurity services and banking and financial technology development) The basis for the determination of the reportable segments is a function primarily of the systematic, consistent process employed by our chief operating decision maker, the Chief Executive Officer, and the Chief Financial Officer in reviewing and interpreting the operations and performance of each segment. The accounting policies applied to these segments are consistent with those employed in the preparation of our consolidated financial statements, as disclosed in note 3 Segment reporting Performance is measured based on segment net income, as included in the Bank’s internal management reporting. Management has determined that this measure is the most relevant in evaluating segment results and in the allocation of resources. Following is information regarding the results of each reportable operating segment as at and for the year ended October 31, 2022 2021: (thousands of Canadian dollars) for the year ended October 31, 2022 October 31, 2021 Digital DRTC Eliminations/ Consolidated Digital DRTC Eliminations/ Consolidated Banking Adjustments Banking Adjustments Net interest income $ 76,666 $ - $ - $ 76,666 $ 60,157 $ - $ - $ 60,157 Non-interest income 52 5,839 (165 ) 5,726 (60 ) 5,411 (151 ) 5,200 Total revenue 76,718 5,839 (165 ) 82,392 60,097 5,411 (151 ) 65,357 Provision for (recovery of) credit losses 451 - - 451 (438 ) - - (438 ) 76,267 5,839 (165 ) 81,941 60,535 5,411 (151 ) 65,795 Non-interest expenses: Salaries and benefits 22,303 4,493 - 26,796 18,354 1,889 - 20,243 General and administrative 17,614 1,283 (165 ) 18,732 10,289 972 (151 ) 11,110 Premises and equipment 2,475 1,390 - 3,865 2,403 1,250 - 3,653 42,392 7,166 (165 ) 49,393 31,046 4,111 (151 ) 35,006 Income (loss) before income taxes 33,875 (1,327 ) - 32,548 29,489 1,300 - 30,789 Income tax provision 9,744 146 - 9,890 7,817 592 - 8,409 Net income (loss) $ 24,131 $ (1,473 ) $ - $ 22,658 $ 21,672 $ 708 $ - $ 22,380 Total assets $ 3,267,479 $ 22,345 $ (23,826 ) $ 3,265,998 $ 2,411,790 $ 22,309 $ (19,013 ) $ 2,415,086 Total liabilities $ 2,912,249 $ 25,755 $ (22,681 ) $ 2,915,323 $ 2,077,643 $ 23,205 $ (17,868 ) $ 2,082,980 |
Note 23 - Acquisitions
Note 23 - Acquisitions | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of business combinations [text block] | 23. Acquisitions: Proposed acquisition of Stearns Bank Holdingford, N.A. On June 14, 2022, 2023. Acquisition of Digital Boundary Group On November 30, 2020, 2021945 3 DBG is an information technology (“IT”) security assurance services firm with offices in London, Ontario and Dallas, Texas. DBG provides corporate and government clients with a suite of IT security assurance services, that range from external network, web and mobile application penetration testing through to physical social engineering engagements along with supervisory control and data acquisition (“SCADA”) system assessments, as well as various aspects of IT security training. The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed on acquisition: (thousands of Canadian dollars) November 30 Assets and liabilities acquired at fair value 2020 Cash $ 1,057 Accounts receivable 1,451 Right-of-use assets 2,473 Other assets 1,194 Intangible assets 3,940 Goodwill 5,754 Deferred income tax liability (898 ) Lease obligations (2,650 ) Other liabilities (2,381 ) $ 9,940 Intangible assets include customer relationships, brands, non-compete agreements and operational software, all of which have been assessed to have a useful life of 10 years. Goodwill primarily reflects the value of an assembled workforce and the value of future growth prospects and expected business synergies realized as a result of combining the acquired business with the Bank’s existing cybersecurity business. Goodwill as well as portions of the intangible assets are not For the year ended October 31, 2022, 2021 2021 2021 |
Note 24 - Comparative Informati
Note 24 - Comparative Information | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of reclassifications or changes in presentation [text block] | 24. Comparative information: The financial statements have been reclassified, where applicable, to conform to the presentation used in the current year. The changes do not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Discloure of Significant Accounting Policies | |
Description of accounting policy for subsidiaries [text block] | a) Principles of consolidation: The Bank holds 100% of the common shares of DRT Cyber Inc., VersaHoldings US Corp. and VersaJet Inc. DRT Cyber Inc. holds 100% 23 100% |
Description of accounting policy for segment reporting [text block] | b) Segment reporting: Effective November 1, 2021, 8 22. |
Description of accounting policy for business combinations [text block] | c) Business Combinations The Bank applied IFRS 3 23 |
Description of accounting policy for recognition of revenue [text block] | d) Revenue recognition: Interest income on cash, securities and loans is recognized in net interest income using the effective interest rate method over the expected life of the instrument. Interest income earned but not Interest income is recognized on impaired loans and is accrued using the rate of interest used to discount the future cash flows for purposes of measuring the impairment loss. Loan fees integral to the yield on the loan are amortized to interest income using the effective interest rate method; otherwise, the fees are recorded in non-interest income. The Bank’s non-interest income stream is substantially derived from the operations of DRTC and its wholly owned subsidiaries. DRTC generates professional services revenue primarily from fees charged for IT security assurance services, supervisory control and data acquisition (“SCADA”) system assessments, as well as IT security training. Revenue is recognized when service is rendered and performance obligations have been satisfied and no |
Description of accounting policy for financial instruments [text block] | e) Financial instruments: Classification and Measurement Under IFRS 9, Debt instruments Financial assets that are debt instruments are categorized into one • amortized cost; • fair value through other comprehensive income (“FVOCI”); • fair value through profit and loss (“FVTPL”). The characterization of a debt instrument’s cashflows is determined through a solely payment of principal and interest (“SPPI”) test. The SPPI test is conducted to identify whether the contractual cash flows of a debt instrument are in fact solely payments of principal and interest and are consistent with a basic lending arrangement. In the context of the SPPI test, “Principal” is defined as the fair value of the debt instrument at origination or initial recognition, which may The Bank’s loans are categorized and measured as amortized cost. Debt instruments with contractual cash flows that meet the SPPI test and are managed on a hold to collect basis are measured at amortized cost. These financial instruments are recognized initially at fair value plus direct and incremental transaction costs, and are subsequently measured at amortized cost, using the effective interest rate method, net of an allowance for credit losses. The effective interest rate is the rate that discounts estimated future cashflows through the expected life of the instrument to the gross carrying amount of the instrument. Amortized cost is calculated as a function of the effective interest rate, taking into account any discount or premium on acquisition, transaction costs and fees. Amortization of these costs is included in interest income in the consolidated statement of income. The Bank’s securities are measured at fair value and categorized as FVTPL. Equity instruments are measured at fair value and categorized as FVTPL unless an irrevocable designation is made at initial recognition to categorize as FVOCI. Gains or losses from changes in the fair value of equity financial instruments designated at FVOCI, including any related foreign exchange gains or losses, are recognized in other comprehensive income (“OCI”). Amounts recognized in OCI are not The Bank has categorized its investment in Canada Stablecorp Inc. as FVOCI and it is carried at fair value. Impairment Allowance for Credit Losses The Bank must maintain an allowance for expected credit losses that is adequate, in management’s opinion, to absorb all credit related losses in the Bank’s lending and treasury portfolios. The Bank’s allowance for expected credit losses is estimated using the ECL methodology and is comprised of expected credit losses recognized on all financial assets that are debt instruments, classified either as amortized cost or as FVOCI, and on all loan commitments and financial guarantees that are not Expected credit losses represent unbiased and probability-weighted estimates that are modeled as a function of a range of possible outcomes as well as the time value of money, and reasonable and supportable information about past events, current conditions and forecasts of future economic conditions, or more specifically forward-looking information (“FLI”) (see Forward-Looking Information below). The Bank’s ECL or impairment model estimates 12 not Loans or other financial instruments that have not 1, 2, 3. Assessment of significant increase in credit risk At each reporting date, the Bank assesses whether or not not Quantitative models may not may may With regards to delinquency and monitoring, there is a rebuttable presumption that the credit risk of a loan or other financial instrument has increased since initial recognition when contractual payments are more than 30 60 may may not Expected credit loss model - Estimation of expected credit losses Expected credit losses are an estimate of a loan’s expected cash shortfalls discounted at the effective interest rate, where a cash shortfall is the difference between the contractual cash flows that are due to the Bank and the cash flows that the Bank actually expects to receive. The ECL calculation is a function of the credit risk parameters; probability of default, loss given default, and exposure at default associated with each loan, sensitized to future market and macroeconomic conditions through the incorporation of FLI derived from multiple economic forecast scenarios, including baseline, upside, and downside scenarios. For clarity: • The probability of default (“PD”) for a loan or a financial instrument is an estimate of the likelihood of default of that instrument over a given time horizon; • The loss given default (“LGD”) for a loan or financial instrument is an estimate of the loss arising in the case where a default of that instrument occurs at a given time or over a given period; and, • The exposure at default (“EAD”) for a loan or financial instrument is an estimate of the Bank’s exposure derived from that instrument at a future default date. The Bank’s ECL model develops contractual cashflow profiles for loans as a function of a number of underlying assumptions and a broad range of input variables. The expected cashflow schedules are subsequently derived from the contractual cashflow schedules, adjusted for incremental default amounts, forgone interest, and recovery amounts. The finalized contractual and expected cashflow schedules are subsequently discounted at the effective interest rate to determine the expected cash shortfall or expected credit losses for each individual loan or financial instrument. Individual allowances are estimated for loans and other financial instruments that are determined to be credit impaired and that have been designated as stage 3. may may not The ECL model requires the recognition of credit losses based on 12 1 2 3 Forward-Looking Information IFRS 9 9 9 The Bank incorporates the impact of future economic conditions, or more specifically forward-looking information into the estimation of expected credit losses at the credit risk parameter level. This is accomplished via the credit risk parameter models and proxy datasets that the Bank utilizes to develop PD and LGD term structure forecasts for its loans. The Bank has sourced credit risk modeling systems and forecast macroeconomic scenario data from Moody’s Analytics, a third not third The Bank utilizes macroeconomic indicator data derived from multiple macroeconomic scenarios comprised of baseline, upside, and downside scenarios in order to mitigate volatility in the estimation of expected credit losses as well as to satisfy the IFRS 9 The macroeconomic indicator data utilized by the Bank for the purpose of sensitizing PD and LGD term structure data to forward economic conditions include, but are not Modified Financial Instruments If the terms of a financial instrument are modified or an existing financial instrument is replaced with a new one, an assessment is made to determine if the financial instrument should be derecognized. Where the modification does not Fair value of financial instruments Estimates of fair value are developed using a variety of valuation methods and assumptions. The Bank follows a fair value hierarchy to categorize the inputs used to measure fair value for its financial instruments. The fair value hierarchy is based on quoted prices in active markets (Level 1 2 not 3 Valuation models may may may Derivatives and embedded derivatives: Derivatives are measured at FVTPL under IFRS 9, Certain derivatives embedded in other financial instruments are treated as separate derivatives when their economic characteristics and risks are not not |
Description of accounting policy for property, plant and equipment [text block] | f) Property and equipment: Property and equipment is carried at cost less accumulated amortization and impairment. Amortization on property and equipment is calculated primarily using the straight-line method over the useful life of the equipment which typically ranges between 5 and 20 years. Property and equipment is subject to an impairment review if there are events or changes in circumstances which indicate that the carrying amounts may not |
Description of accounting policy for intangible assets and goodwill [text block] | g) Goodwill and intangible assets Goodwill is the residual amount that results when the purchase price of an acquired business exceeds the value allocated to the tangible and intangible assets, less liabilities assumed, based on their fair values. Goodwill is not first not Intangible assets acquired in a business acquisition are recorded at their fair value. In subsequent reporting periods, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recorded on a straight-line basis over the expected useful life of the intangible asset. At each reporting date, the carrying value of intangible assets are reviewed for indicators of impairment. If such an indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment, if any. For purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generate cash flows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (“CGU”). If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount and the impairment loss is recognized in profit or loss. The recoverable amount of an asset or CGU is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted at a rate that reflects current market assessments of the time value of money and the risks specific to the assets. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. When an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount so that the increased carrying amount does not no The Bank develops proprietary cybersecurity, banking and financial technology. Any research or early-stage scoping activities are expensed as incurred in the period. The Bank recognizes internally generated intangible assets on the development of proprietary technology when it has determined there is technical feasibility and resources to complete a product, demonstrated an existence of an established market for the product, and support to generate future revenues or derive future economic benefits from the product. |
Description of accounting policy for income tax [text block] | h) Income taxes: Current income taxes are calculated based on taxable income for the reporting period. Taxable income differs from accounting income because of differences in the inclusion and deductibility of certain components of income which are established by taxation authorities. Current income taxes are measured at the amount expected to be recovered or paid using statutory tax rates at the reporting period end. The Bank follows the asset and liability method of accounting for deferred income taxes. Deferred income tax assets and liabilities arise from temporary differences between financial statement carrying values and the respective tax base of those assets and liabilities. Deferred income tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply to taxable income in the years when temporary differences are expected to be recovered or settled. Deferred income tax assets are recognized in the Consolidated Financial Statements to the extent that it is probable that the Bank will have sufficient taxable income to enable the benefit of the deferred income tax asset to be realized. Unrecognized deferred income tax assets are reassessed for recoverability at the end of each reporting period. Current and deferred income taxes are recorded in income for the period, except to the extent that the tax arose from a transaction that is recorded either in Other Comprehensive Income or Equity, in which case the income tax on the transaction will also be recorded either in Other Comprehensive Income or Equity. Accordingly, current and deferred income taxes are presented in the Consolidated Financial Statements as a component of income, or as a component of Other Comprehensive Income. |
Description of accounting policy for employee benefits [text block] | i) Employee benefits: i) Short-term benefits: Short-term employee benefit obligations are recognized as employees render their services and are measured on an undiscounted basis. A liability is recognized for the amount expected to be paid under a short-term cash bonus plan if the Bank has an obligation to make such payments as a result of past service provided by the employee and the obligation can be estimated reliably. ii) Share-based payment transactions: Equity-settled stock options Employee stock options are measured using the Black-Scholes pricing model which is used to estimate the fair value of the options at the date of grant. Inputs to the Black-Scholes model include the closing share price on the grant date, the exercise price, the expected option life, the expected dividend yield, the expected volatility and the risk-free interest rate. Once the expected option life is determined, it is used in formulating the estimates of expected volatility and the risk-free rate. Expected future volatility is estimated using a historical volatility look-back period that is consistent with the expected life of the option. The fair value of options which vest immediately are recognized in full as of the grant date, whereas the fair value of options which vest over time are recognized over the vesting period using the graded method which incorporates management’s estimates of the options which are not The fair value of stock options granted is recorded in salaries and benefits expense in the Consolidated Statements of Income and in Contributed Surplus in the Consolidated Balance Sheets. When options are exercised, the consideration received and the estimated fair value previously recorded in Contributed Surplus is recorded as Share Capital. The Bank’s stock option plan is described in note 13. |
Description of accounting policy for issued capital [text block] | j) Share capital: The Bank’s share capital consists of common shares and preferred shares. Costs directly incurred with raising new share capital are charged against equity. Other costs are expensed as incurred. |
Description of Accounting Policy for Contributed Surplus [text block] | k) Contributed surplus: Contributed surplus consists of the fair value of stock options granted since inception, less amounts reversed for exercised stock options. If granted options vest and then subsequently expire or are forfeited, no |
Description of accounting policy for leases [text block] | l) Leases: At inception of a contract, the Bank assesses whether a contract is, or contains, a lease arrangement based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Bank recognizes a right-of-use asset and a lease obligation at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease obligation adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset and/or the site on which it is located, less any lease incentives received. The assets are depreciated to the earlier of the end of useful life of the right-of-use asset or the lease term using the straight-line method as this methodology most closely reflects the expected pattern of consumption of the associated future economic benefits. The lease term includes periods covered by an option to extend if there is reasonable certainty that the Bank will exercise that option. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease obligation. The lease obligation is measured at amortized cost using the effective interest rate method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Bank’s estimate of the amount expected to be payable under a residual value guarantee, or if the Bank changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease obligation is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or the remeasured amount is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Bank elects to apply the practical expedient to account for leases for which the lease term ends within 12 |
Description of accounting policy for foreign currency translation [text block] | m) Foreign currency translation: Transactions in foreign currencies are translated into the respective functional currencies of the Bank and its subsidiaries at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Canadian dollars at the exchange rate at the reporting date. Foreign currency differences are recognized in profit and loss. Investments classified as fair value through other comprehensive income denominated in a foreign currency are translated into Canadian dollars at the exchange rate at the reporting date. All resulting changes are recognized in other comprehensive income (loss). Foreign operations The assets and liabilities of Digital Boundary Group Inc., a US operation of the Bank, has a functional currency other than the Canadian dollar, and is translated into Canadian dollars at the exchange rate at the reporting date. The income and expenses of this operation are translated into Canadian dollars at the exchange rate at the date of transaction and the foreign currency differences are recognized in other comprehensive income (loss). All other US operations are recognized as having functional currency based on the Canadian dollar. |
Description of changes in accounting policy [text block] | n) Future accounting standard pronouncements: The following accounting standards amendments issues by the IASB will be effective for the Bank’s fiscal year beginning on November 1, 2022: i) Amendments to IAS 16, Property, plant and equipment proceeds before intended use ii) Amendments to IAS 37, Provisions, contingent liabilities and contingent assets - Onerous contracts, cost of fulfilling a contract iii) The IASB provided a number of non-urgent but required amendments to various IFRS Standards under the issuance of its Annual Improvements to IFRS Standards 2018 2020. a. Amendments to IAS 1 First-time Adoption of International Financial Reporting Standards, 1 first b. Amendments to IFRS 9 Financial instruments, “10 These amendments noted above are not |
Note 6 - Loans, Net of Allowa_2
Note 6 - Loans, Net of Allowance for Credit Losses (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Discosure of loans, net [text block] | (thousands of Canadian dollars) 2022 2021 Point of sale loans and leases $ 2,220,894 $ 1,279,576 Commercial real estate mortgages 710,369 757,576 Commercial real estate loans 13,165 26,569 Public sector and other financing 35,452 32,587 2,979,880 2,096,308 Allowance for credit losses (1,904 ) (1,453 ) Accrued interest 14,702 8,195 Total loans, net of allowance for credit losses $ 2,992,678 $ 2,103,050 |
Disclosure of loans by lending asset category [text block] | As at October 31, 2022 As at October 31, 2021 (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Point of sale loans and leases $ 2,215,388 $ 5,227 $ 279 $ 2,220,894 $ 1,277,011 $ 2,565 $ - $ 1,279,576 ECL allowance 545 - - 545 275 - - 275 EL % 0.02 % 0.00 % 0.00 % 0.02 % 0.02 % 0.00 % 0.00 % 0.02 % Commercial real estate mortgages $ 599,113 $ 111,256 $ - $ 710,369 $ 694,869 $ 62,707 $ - $ 757,576 ECL allowance 1,150 137 - 1,287 980 134 - 1,114 EL % 0.19 % 0.12 % 0.00 % 0.18 % 0.14 % 0.21 % 0.00 % 0.15 % Commercial real estate loans $ 13,165 $ - $ - $ 13,165 $ 26,569 $ - $ - $ 26,569 ECL allowance 54 - - 54 45 - - 45 EL % 0.41 % 0.00 % 0.00 % 0.41 % 0.17 % 0.00 % 0.00 % 0.17 % Public sector and other financing $ 35,273 $ 179 $ - $ 35,452 $ 32,507 $ 80 $ - $ 32,587 ECL allowance 17 1 - 18 16 3 - 19 EL % 0.05 % 0.56 % 0.00 % 0.05 % 0.05 % 0.00 % 0.00 % 0.06 % Total loans $ 2,862,939 $ 116,662 $ 279 $ 2,979,880 $ 2,030,956 $ 65,352 $ - $ 2,096,308 Total ECL allowance 1,766 138 - 1,904 1,316 137 - 1,453 Total EL % 0.06 % 0.12 % 0.00 % 0.06 % 0.06 % 0.21 % 0.00 % 0.07 % |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, assets [text block] | (thousands of Canadian dollars) Reported 100 % 100 % 100 % ECL Upside Baseline Downside Allowance for expected credit losses $ 1,904 $ 1,350 $ 1,786 $ 2,474 Variance from reported ECL (554 ) (118 ) 570 Variance from reported ECL (%) (29% ) (6% ) 30 % |
Disclosure of Reconciliation of changes in allowance account for credit losses of financial assets [text block] | (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Point-of-sale loans and leases Balance at beginning of period $ 275 $ - $ - $ 275 Transfer in (out) to Stage 1 91 (91 ) - - Transfer in (out) to Stage 2 (186 ) 186 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 365 (95 ) - 270 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 270 - - 270 Write-offs - - - - Recoveries - - - - Balance at end of period $ 545 $ - $ - $ 545 Commercial real estate mortgages Balance at beginning of period $ 980 $ 134 $ - $ 1,114 Transfer in (out) to Stage 1 75 (75 ) - - Transfer in (out) to Stage 2 (129 ) 129 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 74 (29 ) - 45 Loan originations 286 - - 286 Derecognitions and maturities (136 ) (22 ) - (158 ) Provision for (recovery of) credit losses 170 3 - 173 Write-offs - - - - Recoveries - - - - Balance at end of period $ 1,150 $ 137 $ - $ 1,287 Commercial real estate loans Balance at beginning of period $ 45 $ - $ - $ 45 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 9 - - 9 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 9 - - 9 Write-offs - - - - Recoveries - - - - Balance at end of period $ 54 $ - $ - $ 54 Public sector and other financing Balance at beginning of period $ 16 $ 3 $ - $ 19 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 2 (2 ) - - Loan originations - - - - Derecognitions and maturities (1 ) - - (1 ) Provision for (recovery of) credit losses 1 (2 ) - (1 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 17 $ 1 $ - $ 18 Total balance at end of period $ 1,766 $ 138 $ - $ 1,904 (thousands of Canadian dollars) Stage 1 Stage 2 Stage 3 Total Point of sale loans and leases Balance at beginning of period $ 215 $ - $ - $ 215 Transfer in (out) to Stage 1 89 (89 ) - - Transfer in (out) to Stage 2 (178 ) 178 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance 149 (89 ) - 60 Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses 60 - - 60 Write-offs - - - - Recoveries - - - - Balance at end of period $ 275 $ - $ - $ 275 Commercial real estate mortgages Balance at beginning of period $ 1,174 $ 192 $ - $ 1,366 Transfer in (out) to Stage 1 93 (93 ) - - Transfer in (out) to Stage 2 (124 ) 124 - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (425 ) (22 ) - (447 ) Loan originations 421 - - 421 Derecognitions and maturities (159 ) (67 ) - (226 ) Provision for (recovery of) credit losses (194 ) (58 ) - (252 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 980 $ 134 $ - $ 1,114 Commercial real estate loans Balance at beginning of period $ 137 $ - $ - $ 137 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (92 ) - - (92 ) Loan originations - - - - Derecognitions and maturities - - - - Provision for (recovery of) credit losses (92 ) - - (92 ) Write-offs - - - - Recoveries - - - - Balance at end of period $ 45 $ - $ - $ 45 Public sector and other financing Balance at beginning of period $ 57 $ - $ - $ 57 Transfer in (out) to Stage 1 - - - - Transfer in (out) to Stage 2 - - - - Transfer in (out) to Stage 3 - - - - Net remeasurement of loss allowance (35 ) - - (35 ) Loan originations - 3 - 3 Derecognitions and maturities (6 ) - (116 ) (122 ) Provision for (recovery of) credit losses (41 ) 3 (116 ) (154 ) Write-offs - - - - Recoveries - - 116 116 Balance at end of period $ 16 $ 3 $ - $ 19 Total balance at end of period $ 1,316 $ 137 $ - $ 1,453 |
Disclosure for maturity analysis of loans, net of allowance [text block] | (thousands of Canadian dollars) Within 3 months to 1 year to 2 years to Over 2022 2021 Floating 3 months 1 year 2 years 5 years 5 years Total Total Total loans $ 670,350 $ 106,262 $ 501,818 $ 238,460 $ 1,050,292 $ 412,698 $ 2,979,880 $ 2,096,308 Average effective yield 8.29 % 4.57 % 5.42 % 4.93 % 4.95 % 5.58 % 5.85 % 4.52 % |
Note 7 - Other Assets (Tables)
Note 7 - Other Assets (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about other assets [text block] | (thousands of Canadian dollars) 2022 2021 Accounts receivable $ 3,774 $ 2,643 Prepaid expenses and other (note 7a) 16,391 12,699 Property and equipment (note 8) 6,868 7,075 Right-of-use assets 4,122 4,817 Deferred income tax asset (note 14) 2,128 2,931 Investment (note 7b) 953 953 Goodwill (note 7c) 5,754 5,754 Intangible assets 3,185 3,641 $ 43,175 $ 40,513 |
Note 8 - Property and Equipme_2
Note 8 - Property and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about property, plant and equipment [text block] | (thousands of Canadian dollars) 2022 2021 Cost $ 17,465 $ 16,884 Accumulated amortization (10,597 ) (9,809 ) $ 6,868 $ 7,075 |
Note 9 - Deposits (Tables)
Note 9 - Deposits (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about deposits from banks [text block] | (thousands of Canadian dollars) Maturity period Demand/ Within 3 months to 1 year to 2 years to Over Accrued 2022 2021 Floating 3 months 1 year 2 years 5 years 5 years Interest Total Total Total deposits $ 507,879 $ 275,220 $ 904,664 $ 529,806 $ 412,739 $ 331 $ 26,901 $ 2,657,540 $ 1,853,204 Average effective interest rate 2.81 % 2.01 % 2.99 % 2.90 % 2.57 % 5.07 % 2.74 % 1.19 % |
Note 10 - Subordinated Notes _2
Note 10 - Subordinated Notes Payable (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about borrowings [text block] | (thousands of Canadian dollars) 2022 2021 Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 19), effective interest rate of 10.41%, maturing March 2029. $ 4,908 $ 4,898 Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of USD $75.0 million, effective interest rate of 5.38%, maturing May 2031. 100,043 90,374 $ 104,951 $ 95,272 |
Note 11 - Other Liabilities (Ta
Note 11 - Other Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about other liabilities [text block] | (thousands of Canadian dollars) 2022 2021 Accounts payable and other $ 7,662 $ 6,893 Current income tax liability 5,797 2,949 Deferred income tax liability (note 14) 786 898 Lease obligations 4,471 5,113 Cash collateral and amounts held in escrow 8,006 7,887 Cash reserves on loan and lease receivables 126,110 110,764 $ 152,832 $ 134,504 |
Note 12 - Share Capital (Tables
Note 12 - Share Capital (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of issued capital [text block] | (thousands of Canadian dollars) 2022 2021 Shares Amount Shares Amount Common shares: Balance, beginning of the year 27,441,082 $ 227,674 21,123,559 $ 152,612 Issued during the year - - 6,325,000 75,101 Cancelled during the year (195,300 ) (1,692 ) (7,477 ) (39 ) Outstanding, end of year 27,245,782 $ 225,982 27,441,082 $ 227,674 Series 1 preferred shares: Outstanding, beginning and end of year 1,461,460 $ 13,647 1,461,460 $ 13,647 Series 3 preferred shares: Balance, beginning of the year - $ - 1,681,320 $ 15,690 Redemption of preferred shares - - (1,681,320 ) (15,690 ) Outstanding, end of year - $ - - $ - Total share capital $ 239,629 $ 241,321 |
Note 13 - Stock-based Compens_2
Note 13 - Stock-based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of number and weighted average exercise prices of share options [text block] | 2022 2021 Weighted Weighted Number of average Number of average options exercise price options exercise price Outstanding, beginning of period 40,000 $ 7.00 42,017 $ 10.73 Granted 971,707 15.90 - - Exercised - - - - Forfeited/cancelled (45,941 ) 15.90 - - Expired - - (2,017 ) 10.73 Outstanding, end of period 965,766 $ 15.53 40,000 $ 7.00 |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of reconciliation of income tax expense [text block] | (thousands of Canadian dollars) 2022 2021 Income before income taxes $ 32,548 $ 30,789 Income tax rate 27 % 27 % Expected income tax provision 8,788 8,313 Tax rate differential 172 (83 ) Unrecognized deferred tax asset 411 159 Other permanent differences 519 20 Income taxes $ 9,890 $ 8,409 |
Disclosure of major components of income tax expense [text block] | (thousands of Canadian dollars) 2022 2021 Current income taxes $ 9,199 $ 4,319 Deferred income taxes 691 4,090 Income taxes $ 9,890 $ 8,409 |
Disclosure of temporary difference, unused tax losses and unused tax credits [text block] | (thousands of Canadian dollars) Recognized Recognized November 1, in net directly to October 31, 2021 income equity 2022 Allowance for credit losses $ 388 $ 120 $ - $ 508 Loss carry forwards 338 (338 ) - - Share issue and financing costs 1,373 (464 ) - 909 Deposit commissions (981 ) (246 ) - (1,227 ) Intangibles assets (898 ) 112 - (786 ) Deferred loan fees 757 (99 ) - 658 Other 1,056 224 - 1,280 Net deferred income tax assets $ 2,033 $ (691 ) $ - $ 1,342 (thousands of Canadian dollars) Recognized Recognized Recognized November 1, in net on acquisition directly to October 31, 2020 income of DBG equity 2021 Allowance for credit losses $ 474 $ (86 ) $ - $ - $ 388 Loss carry forwards 4,166 (3,828 ) - - 338 Share issue and financing costs 87 (590 ) - 1,876 1,373 Deposit commissions (865 ) (116 ) - - (981 ) Intangibles assets - - (898 ) - (898 ) Deferred loan fees 526 231 - - 757 Other 757 299 - - 1,056 Net deferred income tax assets $ 5,145 $ (4,090 ) $ (898 ) $ 1,876 $ 2,033 (thousands of Canadian dollars) 2022 2021 Deferred tax assets $ 2,128 $ 2,931 Deferred tax liabilities (786 ) (898 ) Net deferred income tax assets $ 1,342 $ 2,033 |
Note 15 - Per Share Amounts (Ta
Note 15 - Per Share Amounts (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Earnings per share [text block] | (thousands of Canadian dollars) 2022 2021 Net income $ 22,658 $ 22,380 Preferred share dividends paid (988 ) (1,578 ) Net income available to common shareholders 21,670 20,802 Weighted average number of common shares outstanding 27,425,479 21,752,930 Basic and diluted income per common share: $ 0.79 $ 0.96 |
Note 16 - Nature and Extent o_2
Note 16 - Nature and Extent of Risks Arising from Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Sensitivity analysis for types of market risk [text block] | (thousands of Canadian dollars) 2022 2021 Increase 100 bps Decrease 100 bps Increase 100 bps Decrease 100 bps Increase (decrease): Sensitivity of projected net interest income during a 12 month period $ 4,304 $ (4,261 ) $ 4,147 $ (3,220 ) Duration difference between assets and liabilities (months) 1.4 2.3 |
Note 17 - Interest Rate Risk _2
Note 17 - Interest Rate Risk and Liquidity Risk (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of financial instruments by type of interest rate [text block] | (thousands of Canadian dollars) Floating Within 3 months to 1 year to 2 years to Over Non-interest rate 3 months 1 year 2 years 5 years 5 years rate sensitive Total Assets Cash $ 88,581 $ - $ - $ - $ - $ - $ - $ 88,581 Effective rate 2.60 % Securities - 121,871 19,693 - - - - 141,564 Effective rate 3.06 % 2.81 % Loans 670,350 106,262 501,818 238,460 1,050,292 412,698 12,798 2,992,678 Effective rate 8.29 % 4.57 % 5.42 % 4.93 % 4.95 % 5.58 % Other - - - - - - 43,175 43,175 Effective rate Total Assets $ 758,931 $ 228,133 $ 521,511 $ 238,460 $ 1,050,292 $ 412,698 $ 55,973 $ 3,265,998 Liabilities Deposits $ 507,879 $ 275,220 $ 904,664 $ 529,806 $ 412,739 $ 331 $ 26,901 $ 2,657,540 Effective rate 2.81 % 2.01 % 2.99 % 2.90 % 2.57 % 5.07 % Subordinated notes - - - - - 104,951 - 104,951 Effective rate 5.62 % Other 134,116 - - - - - 18,716 152,832 Effective rate 3.17 % Equity - - - - 13,647 - 337,028 350,675 Effective rate 6.77 % Total liabilities and equity $ 641,995 $ 275,220 $ 904,664 $ 529,806 $ 426,386 $ 105,282 $ 382,645 $ 3,265,998 October 31, 2022 gap $ 116,936 $ (47,087 ) $ (383,153 ) $ (291,346 ) $ 623,906 $ 307,416 $ (326,672 ) $ - Cumulative $ 116,936 $ 69,849 $ (313,304 ) $ (604,650 ) $ 19,256 $ 326,672 $ - $ - October 31, 2021 gap $ 316,829 $ (209,462 ) $ (152,523 ) $ (40,897 ) $ 327,480 $ 58,561 $ (299,988 ) $ - Cumulative $ 316,829 $ 107,367 $ (45,156 ) $ (86,053 ) $ 241,427 $ 299,988 $ - $ - |
Note 18 - Fair Value of Finan_2
Note 18 - Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about financial instruments [text block] | (thousands of Canadian dollars) 2022 2021 Book Value Fair Value Book Value Fair Value Assets Cash $ 88,581 $ 88,581 $ 271,523 $ 271,523 Securities 141,564 141,564 - - Loans 2,992,678 2,963,676 2,103,050 2,118,636 Other financial assets 953 953 953 953 Liabilities Deposits $ 2,657,540 $ 2,561,421 $ 1,853,204 $ 1,860,332 Subordinated notes payable 104,951 107,368 95,272 97,910 Other financial liabilities 146,249 146,249 130,657 130,657 |
Note 20 - Commitments and Con_2
Note 20 - Commitments and Contingencies (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of commitments [text block] | (thousands of Canadian dollars) 2022 2021 Loan commitments $ 382,851 $ 296,248 Letters of credit 60,273 46,462 $ 443,124 $ 342,710 |
Note 21 - Capital Management (T
Note 21 - Capital Management (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of regulatory capital and capital ratios [text block] | (thousands of Canadian dollars) 2022 2022 2021 "Transitional" "All in" "All in" Common Equity Tier 1 (CET1) capital Directly issued qualifying common share capital $ 225,982 $ 225,982 $ 227,674 Contributed surplus 1,612 1,612 145 Retained earnings 109,335 109,335 90,644 Accumulated other comprehensive income 99 99 (4 ) CET1 before regulatory adjustments 337,028 337,028 318,459 Regulatory adjustments applied to CET1 (11,371 ) (11,371 ) (12,751 ) Common Equity Tier 1 capital $ 325,657 $ 325,657 $ 305,708 Additional Tier 1 capital Directly issued qualifying Additional Tier 1 instruments $ 13,647 $ 13,647 $ 13,647 Total Tier 1 capital $ 339,304 $ 339,304 $ 319,355 Tier 2 capital Directly issued capital instruments $ 107,367 $ 107,367 $ 97,910 Tier 2 capital before regulatory adjustments 107,367 107,367 97,910 Eligible stage 1 and stage 2 allowance 1,904 1,904 1,453 Total Tier 2 capital $ 109,271 $ 109,271 $ 99,363 Total regulatory capital $ 448,575 $ 448,575 $ 418,718 Total risk-weighted assets $ 2,714,902 $ 2,714,902 $ 2,013,544 Capital ratios CET1 capital ratio 12.00 % 12.00 % 15.18 % Tier 1 capital ratio 12.50 % 12.50 % 15.86 % Total capital ratio 16.52 % 16.52 % 20.80 % (thousands of Canadian dollars) 2022 2022 2021 "Transitional" "All-in" "All-in" On-balance sheet assets $ 3,265,998 $ 3,265,998 $ 2,415,086 Asset amounts adjusted in determining the Basel III Tier 1 capital (11,371 ) (11,371 ) (12,751 ) Total on-balance sheet exposures 3,254,627 3,254,627 2,402,335 Off-balance sheet exposure at gross notional amount $ 443,124 $ 443,124 $ 342,710 Adjustments for conversion to credit equivalent amount (251,101 ) (251,101 ) (210,065 ) Off-balance sheet exposures 192,023 192,023 132,645 Tier 1 capital 339,304 339,304 319,355 Total exposures 3,446,650 3,446,650 2,534,980 Leverage ratio 9.84 % 9.84 % 12.60 % |
Note 22 - Operating Segments (T
Note 22 - Operating Segments (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of operating segments [text block] | (thousands of Canadian dollars) for the year ended October 31, 2022 October 31, 2021 Digital DRTC Eliminations/ Consolidated Digital DRTC Eliminations/ Consolidated Banking Adjustments Banking Adjustments Net interest income $ 76,666 $ - $ - $ 76,666 $ 60,157 $ - $ - $ 60,157 Non-interest income 52 5,839 (165 ) 5,726 (60 ) 5,411 (151 ) 5,200 Total revenue 76,718 5,839 (165 ) 82,392 60,097 5,411 (151 ) 65,357 Provision for (recovery of) credit losses 451 - - 451 (438 ) - - (438 ) 76,267 5,839 (165 ) 81,941 60,535 5,411 (151 ) 65,795 Non-interest expenses: Salaries and benefits 22,303 4,493 - 26,796 18,354 1,889 - 20,243 General and administrative 17,614 1,283 (165 ) 18,732 10,289 972 (151 ) 11,110 Premises and equipment 2,475 1,390 - 3,865 2,403 1,250 - 3,653 42,392 7,166 (165 ) 49,393 31,046 4,111 (151 ) 35,006 Income (loss) before income taxes 33,875 (1,327 ) - 32,548 29,489 1,300 - 30,789 Income tax provision 9,744 146 - 9,890 7,817 592 - 8,409 Net income (loss) $ 24,131 $ (1,473 ) $ - $ 22,658 $ 21,672 $ 708 $ - $ 22,380 Total assets $ 3,267,479 $ 22,345 $ (23,826 ) $ 3,265,998 $ 2,411,790 $ 22,309 $ (19,013 ) $ 2,415,086 Total liabilities $ 2,912,249 $ 25,755 $ (22,681 ) $ 2,915,323 $ 2,077,643 $ 23,205 $ (17,868 ) $ 2,082,980 |
Note 23 - Acquisitions (Tables)
Note 23 - Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Disclosure of detailed information about business combination [text block] | (thousands of Canadian dollars) November 30 Assets and liabilities acquired at fair value 2020 Cash $ 1,057 Accounts receivable 1,451 Right-of-use assets 2,473 Other assets 1,194 Intangible assets 3,940 Goodwill 5,754 Deferred income tax liability (898 ) Lease obligations (2,650 ) Other liabilities (2,381 ) $ 9,940 |
Note 3 - Significant Accounti_2
Note 3 - Significant Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended |
Oct. 31, 2022 CAD ($) | |
Statement Line Items [Line Items] | |
Number of segments | 2 |
Impairment loss recognised in profit or loss, intangible assets other than goodwill | $ 0 |
Bottom of range [member] | |
Statement Line Items [Line Items] | |
Useful life measured as period of time, property, plant and equipment (Year) | 5 years |
Top of range [member] | |
Statement Line Items [Line Items] | |
Useful life measured as period of time, property, plant and equipment (Year) | 20 years |
DRT Cyber Inc.[member] | |
Statement Line Items [Line Items] | |
Proportion of ownership interest in subsidiary | 100% |
The 11409891 Canada Inc. [member] | |
Statement Line Items [Line Items] | |
Proportion of ownership interest in subsidiary | 100% |
VersaJet Inc. [member] | |
Statement Line Items [Line Items] | |
Proportion of ownership interest in subsidiary | 100% |
Note 5 - Securities (Details Te
Note 5 - Securities (Details Textual) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 31, 2022 CAD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 CAD ($) | Oct. 31, 2022 USD ($) | |
Statement Line Items [Line Items] | ||||
Investments in Securities | $ 141,564 | $ 0 | ||
Cash payment to acquire securities | 141,031 | 0 | ||
Government of Canada Treasury Bills and a U.S. Government Treasury Bill [member] | ||||
Statement Line Items [Line Items] | ||||
Investments in Securities | 141,600 | $ 0 | ||
Zero-coupon Bank of Canada treasury bills [member] | ||||
Statement Line Items [Line Items] | ||||
Cash payment to acquire securities | 116,500 | |||
Notional amount | 117,500 | |||
Zero-coupon US Government treasury bills [member] | ||||
Statement Line Items [Line Items] | ||||
Cash payment to acquire securities | 24,500 | $ 17,990 | ||
Notional amount | $ 24,600 | $ 18,000 | ||
Financial assets, interest rate | 2.64% | 2.64% | ||
Zero-coupon US Government treasury bills [member] | Weighted average [member] | ||||
Statement Line Items [Line Items] | ||||
Financial assets, interest rate | 3.10% | 3.10% |
Note 6 - Loans, Net of Allowa_3
Note 6 - Loans, Net of Allowance for Credit Losses (Details Textual) - Loans [member] - CAD ($) | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Total financial assets | $ 2,992,678,000 | $ 2,103,050,000 |
Financial assets impaired [member] | ||
Statement Line Items [Line Items] | ||
Total financial assets | $ 279,000 | $ 0 |
Note 6 - Loans, Net of Allowa_4
Note 6 - Loans, Net of Allowance for Credit Losses - Portfolio Analysis (Details) - Loans [member] - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Statement Line Items [Line Items] | |||
Principal amount | $ 2,979,880 | $ 2,096,308 | |
Allowance for credit losses | (1,904) | (1,453) | |
Accrued interest | 14,702 | 8,195 | |
Total loans, net of allowance for credit losses | 2,992,678 | 2,103,050 | |
Point of sale loans and leases [member] | |||
Statement Line Items [Line Items] | |||
Principal amount | 2,220,894 | 1,279,576 | |
Allowance for credit losses | (54) | (45) | $ (137) |
Commercial real estate mortgages [member] | |||
Statement Line Items [Line Items] | |||
Principal amount | 710,369 | 757,576 | |
Allowance for credit losses | (545) | (275) | (215) |
Commercial real estate loans [member] | |||
Statement Line Items [Line Items] | |||
Principal amount | 13,165 | 26,569 | |
Allowance for credit losses | (1,287) | (1,114) | (1,366) |
Public sector and other financing [member] | |||
Statement Line Items [Line Items] | |||
Principal amount | 35,452 | 32,587 | |
Allowance for credit losses | $ (18) | $ (19) | $ (57) |
Note 6 - Loans, Net of Allowa_5
Note 6 - Loans, Net of Allowance for Credit Losses - Summary of Loan, ECL, and EL amounts by lending asset category (Details) - Loans [member] - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Statement Line Items [Line Items] | |||
Notional amount | $ 2,979,880 | $ 2,096,308 | |
ECL allowance | $ 1,904 | $ 1,453 | |
EL % | 0.06% | 0.07% | |
Stage 1 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 2,862,939 | $ 2,030,956 | |
ECL allowance | $ 1,766 | $ 1,316 | |
EL % | 0.06% | 0.06% | |
Stage 2 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 116,662 | $ 65,352 | |
ECL allowance | $ 138 | $ 137 | |
EL % | 0.12% | 0.21% | |
Financial instruments credit-impaired [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 279 | $ 0 | |
ECL allowance | $ 0 | $ 0 | |
EL % | 0% | 0% | |
Point of sale loans and leases [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 2,220,894 | $ 1,279,576 | |
ECL allowance | $ 54 | $ 45 | $ 137 |
EL % | 0.41% | 0.17% | |
Point of sale loans and leases [member] | Stage 1 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 2,215,388 | $ 1,277,011 | |
ECL allowance | $ 54 | $ 45 | 137 |
EL % | 0.41% | 0.17% | |
Point of sale loans and leases [member] | Stage 2 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 5,227 | $ 2,565 | |
ECL allowance | $ 0 | $ 0 | 0 |
EL % | 0% | 0% | |
Point of sale loans and leases [member] | Financial instruments credit-impaired [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 279 | $ 0 | |
ECL allowance | $ 0 | $ 0 | 0 |
EL % | 0% | 0% | |
Commercial real estate mortgages [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 710,369 | $ 757,576 | |
ECL allowance | $ 545 | $ 275 | 215 |
EL % | 0.02% | 0.02% | |
Commercial real estate mortgages [member] | Stage 1 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 599,113 | $ 694,869 | |
ECL allowance | $ 545 | $ 275 | 215 |
EL % | 0.02% | 0.02% | |
Commercial real estate mortgages [member] | Stage 2 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 111,256 | $ 62,707 | |
ECL allowance | $ 0 | $ 0 | 0 |
EL % | 0% | 0% | |
Commercial real estate mortgages [member] | Financial instruments credit-impaired [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
ECL allowance | $ 0 | $ 0 | 0 |
EL % | 0% | 0% | |
Commercial real estate loans [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 13,165 | $ 26,569 | |
ECL allowance | $ 1,287 | $ 1,114 | 1,366 |
EL % | 0.18% | 0.15% | |
Commercial real estate loans [member] | Stage 1 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 13,165 | $ 26,569 | |
ECL allowance | $ 1,150 | $ 980 | 1,174 |
EL % | 0.19% | 0.14% | |
Commercial real estate loans [member] | Stage 2 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
ECL allowance | $ 137 | $ 134 | 192 |
EL % | 0.12% | 0.21% | |
Commercial real estate loans [member] | Financial instruments credit-impaired [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
ECL allowance | $ 0 | $ 0 | 0 |
EL % | 0% | 0% | |
Public sector and other financing [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 35,452 | $ 32,587 | |
ECL allowance | $ 18 | $ 19 | 57 |
EL % | 0.05% | 0.06% | |
Public sector and other financing [member] | Stage 1 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 35,273 | $ 32,507 | |
ECL allowance | $ 17 | $ 16 | 57 |
EL % | 0.05% | 0.05% | |
Public sector and other financing [member] | Stage 2 [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 179 | $ 80 | |
ECL allowance | $ 1 | $ 3 | 0 |
EL % | 0.56% | 0% | |
Public sector and other financing [member] | Financial instruments credit-impaired [member] | |||
Statement Line Items [Line Items] | |||
Notional amount | $ 0 | $ 0 | |
ECL allowance | $ 0 | $ 0 | $ 0 |
EL % | 0% | 0% |
Note 6 - Loans, Net of Allowa_6
Note 6 - Loans, Net of Allowance for Credit Losses - Expected Credit Loss Sensitivity (Details) - Loans [member] - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Allowance for expected credit losses | $ 1,904 | $ 1,453 |
Upside, 100% [member] | ||
Statement Line Items [Line Items] | ||
Allowance for expected credit losses | 1,350 | |
Variance from reported ECL | $ (554) | |
Variance from reported ECL (%) | (29.00%) | |
Baseline, 100% [member] | ||
Statement Line Items [Line Items] | ||
Allowance for expected credit losses | $ 1,786 | |
Variance from reported ECL | $ (118) | |
Variance from reported ECL (%) | (6.00%) | |
Downside, 100% [member] | ||
Statement Line Items [Line Items] | ||
Allowance for expected credit losses | $ 2,474 | |
Variance from reported ECL | $ 570 | |
Variance from reported ECL (%) | 30% |
Note 6 - Loans, Net of Allowa_7
Note 6 - Loans, Net of Allowance for Credit Losses - Reconciliation of ECL Allowance by Lending Asset Category (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Provision for (recovery of) credit losses | $ 451 | $ (438) |
Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 1,453 | |
Balance at end of period | 1,904 | 1,453 |
Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 1,316 | |
Balance at end of period | 1,766 | 1,316 |
Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 137 | |
Balance at end of period | 138 | 137 |
Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | |
Balance at end of period | 0 | 0 |
Commercial real estate mortgages [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 275 | 215 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 270 | 60 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 270 | 60 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 545 | 275 |
Commercial real estate mortgages [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 275 | 215 |
Transfer in (out) to Stage 1 | 91 | 89 |
Transfer in (out) to Stage 2 | (186) | (178) |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 365 | 149 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 270 | 60 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 545 | 275 |
Commercial real estate mortgages [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | (91) | (89) |
Transfer in (out) to Stage 2 | 186 | 178 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (95) | (89) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Commercial real estate mortgages [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Commercial real estate loans [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 1,114 | 1,366 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 45 | (447) |
Loan originations | 286 | 421 |
Derecognitions and maturities | (158) | (226) |
Provision for (recovery of) credit losses | 173 | (252) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 1,287 | 1,114 |
Commercial real estate loans [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 980 | 1,174 |
Transfer in (out) to Stage 1 | 75 | 93 |
Transfer in (out) to Stage 2 | (129) | (124) |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 74 | (425) |
Loan originations | 286 | 421 |
Derecognitions and maturities | (136) | (159) |
Provision for (recovery of) credit losses | 170 | (194) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 1,150 | 980 |
Commercial real estate loans [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 134 | 192 |
Transfer in (out) to Stage 1 | (75) | (93) |
Transfer in (out) to Stage 2 | 129 | 124 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (29) | (22) |
Loan originations | 0 | 0 |
Derecognitions and maturities | (22) | (67) |
Provision for (recovery of) credit losses | 3 | (58) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 137 | 134 |
Commercial real estate loans [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Point of sale loans and leases [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 45 | 137 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 9 | (92) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 9 | (92) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 54 | 45 |
Point of sale loans and leases [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 45 | 137 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 9 | (92) |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 9 | (92) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 54 | 45 |
Point of sale loans and leases [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Point of sale loans and leases [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | 0 | 0 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 0 | 0 |
Public sector and other financing [member] | Loans [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 19 | 57 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | (35) |
Loan originations | 0 | 3 |
Derecognitions and maturities | (1) | (122) |
Provision for (recovery of) credit losses | (1) | (154) |
Write-offs | 0 | 0 |
Recoveries | 0 | 116 |
Balance at end of period | 18 | 19 |
Public sector and other financing [member] | Loans [member] | Stage 1 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 16 | 57 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 2 | (35) |
Loan originations | 0 | 0 |
Derecognitions and maturities | (1) | (6) |
Provision for (recovery of) credit losses | 1 | (41) |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 17 | 16 |
Public sector and other financing [member] | Loans [member] | Stage 2 [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 3 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | (2) | 0 |
Loan originations | 0 | 3 |
Derecognitions and maturities | 0 | 0 |
Provision for (recovery of) credit losses | (2) | 3 |
Write-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 1 | 3 |
Public sector and other financing [member] | Loans [member] | Financial instruments credit-impaired [member] | ||
Statement Line Items [Line Items] | ||
Balance at beginning of period | 0 | 0 |
Transfer in (out) to Stage 1 | 0 | 0 |
Transfer in (out) to Stage 2 | 0 | 0 |
Transfer in (out) to Stage 3 | 0 | 0 |
Net remeasurement of loss allowance | 0 | 0 |
Loan originations | 0 | 0 |
Derecognitions and maturities | 0 | (116) |
Provision for (recovery of) credit losses | 0 | (116) |
Write-offs | 0 | 0 |
Recoveries | 0 | 116 |
Balance at end of period | $ 0 | $ 0 |
Note 6 - Loans, Net of Allowa_8
Note 6 - Loans, Net of Allowance for Credit Losses - Maturities and Yields (Details) - Loans [member] - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Total loans | $ 2,979,880 | $ 2,096,308 |
Average effective yield | 5.85% | 4.52% |
Not later than three months [member] | ||
Statement Line Items [Line Items] | ||
Total loans | $ 106,262 | |
Average effective yield | 4.57% | |
Later than three months and not later than one year [member] | ||
Statement Line Items [Line Items] | ||
Total loans | $ 501,818 | |
Average effective yield | 5.42% | |
Later than one year and not later than two years [member] | ||
Statement Line Items [Line Items] | ||
Total loans | $ 238,460 | |
Average effective yield | 4.93% | |
Later than two year and not later than five years [member] | ||
Statement Line Items [Line Items] | ||
Total loans | $ 1,050,292 | |
Average effective yield | 4.95% | |
Later than five years [member] | ||
Statement Line Items [Line Items] | ||
Total loans | $ 412,698 | |
Average effective yield | 5.58% | |
Floating interest rate [member] | ||
Statement Line Items [Line Items] | ||
Total loans | $ 670,350 | |
Average effective yield | 8.29% |
Note 7 - Other Assets (Details
Note 7 - Other Assets (Details Textual) | 2 Months Ended | 12 Months Ended | |
Feb. 28, 2021 CAD ($) | Oct. 31, 2022 CAD ($) | Oct. 31, 2021 CAD ($) | |
Statement Line Items [Line Items] | |||
Depreciation, right-of-use assets | $ 695,000 | $ 695,000 | |
Amortisation, intangible assets other than goodwill | 456,000 | 299,000 | |
Capitilised development costs | $ 6.2 | $ 4.2 | |
Significant unobservable input, assets | 4 | ||
Adjustments for impairment loss recognised in profit or loss, goodwill | $ 0 | ||
Goodwill [member] | Period of projected cash flow [member] | |||
Statement Line Items [Line Items] | |||
Significant unobservable input, assets | 5 | ||
Goodwill [member] | Discount rate, measurement input [member] | |||
Statement Line Items [Line Items] | |||
Significant unobservable input, assets | 0.124 | ||
Goodwill [member] | Average yearly earnings growth rate [member] | |||
Statement Line Items [Line Items] | |||
Significant unobservable input, assets | 0.12 | ||
Goodwill [member] | Terminal growth rate [member] | |||
Statement Line Items [Line Items] | |||
Significant unobservable input, assets | 0.020 | ||
Canada Stablecorp Inc.[member] | |||
Statement Line Items [Line Items] | |||
Proportion of ownership interest in associate | 11% | ||
Purchase of interests in associates | $ 953,000 |
Note 7 - Other Assets - Schedul
Note 7 - Other Assets - Schedule of Other Assets (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Accounts receivable | $ 3,774 | $ 2,643 |
Prepaid expenses and other (note 7a) | 16,391 | 12,699 |
Property and equipment (note 8) | 6,868 | 7,075 |
Right-of-use assets | 4,122 | 4,817 |
Deferred income tax asset (note 14) | 2,128 | 2,931 |
Investment (note 7b) | 953 | 953 |
Goodwill (note 7c) | 5,754 | 5,754 |
Intangible assets | 3,185 | 3,641 |
Other assets | $ 43,175 | $ 40,513 |
Note 8 - Property and Equipme_3
Note 8 - Property and Equipment (Details Textual) - CAD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Property, plant and equipment, restrictions on title | $ 0 | |
Depreciation, property, plant and equipment | $ 788,000 | $ 735,000 |
Note 8 - Property and Equipme_4
Note 8 - Property and Equipment (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Property and equipment | $ 6,868 | $ 7,075 |
Gross carrying amount [member] | ||
Statement Line Items [Line Items] | ||
Property and equipment | 17,465 | 16,884 |
Accumulated depreciation and amortisation [member] | ||
Statement Line Items [Line Items] | ||
Property and equipment | $ (10,597) | $ (9,809) |
Note 9 - Deposits - Schedule of
Note 9 - Deposits - Schedule of Deposits (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 2,657,540 | $ 1,853,204 |
Total deposits, accrued interest | $ 26,901 | |
Average effective interest rate | 2.74% | 1.19% |
Floating interest rate [member] | ||
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 507,879 | |
Average effective interest rate | 2.81% | |
Fixed interest rate [member] | Not later than three months [member] | ||
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 275,220 | |
Average effective interest rate | 2.01% | |
Fixed interest rate [member] | Later than three months and not later than one year [member] | ||
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 904,664 | |
Average effective interest rate | 2.99% | |
Fixed interest rate [member] | Later than one year and not later than two years [member] | ||
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 529,806 | |
Average effective interest rate | 2.90% | |
Fixed interest rate [member] | Later than two years and not later than five years [member] | ||
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 412,739 | |
Average effective interest rate | 2.57% | |
Fixed interest rate [member] | Later than five years [member] | ||
Statement Line Items [Line Items] | ||
Deposits (note 9) | $ 331 | |
Average effective interest rate | 5.07% |
Note 10 - Subordinated Notes _3
Note 10 - Subordinated Notes Payable (Details Textual) - Subordinated notes payable [member] $ in Thousands, $ in Millions | Apr. 30, 2021 CAD ($) | Oct. 31, 2022 CAD ($) | Oct. 31, 2021 CAD ($) | Apr. 30, 2021 USD ($) |
Statement Line Items [Line Items] | ||||
Total borrowings | $ 92,100 | $ 104,951 | $ 95,272 | $ 75 |
Borrowings, interest rate | 5% | 5% | ||
Payments for debt issue costs | $ 2,600 | |||
Three month Bankers' Acceptance Rate [member] | ||||
Statement Line Items [Line Items] | ||||
Borrowings, adjustment to interest rate basis | 3.61% | 3.61% |
Note 10 - Subordinated Notes _4
Note 10 - Subordinated Notes Payable - Schedule of Subordinated Notes Payable (Details) $ in Thousands, $ in Millions | Oct. 31, 2022 CAD ($) | Oct. 31, 2021 CAD ($) | Apr. 30, 2021 CAD ($) | Apr. 30, 2021 USD ($) |
Subordinated notes payable, maturing March 2029 [member] | ||||
Statement Line Items [Line Items] | ||||
Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 19), effective interest rate of 10.41%, maturing March 2029. | $ 4,908 | $ 4,898 | ||
Subordinated notes payable, maturing May 2031 [member] | ||||
Statement Line Items [Line Items] | ||||
Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 19), effective interest rate of 10.41%, maturing March 2029. | 100,043 | 90,374 | ||
Subordinated notes payable [member] | ||||
Statement Line Items [Line Items] | ||||
Ten year term, unsecured, non-viability contingent capital compliant, subordinated notes payable, principal amount of $5.0 million, $500,000 is held by related party (note 19), effective interest rate of 10.41%, maturing March 2029. | $ 104,951 | $ 95,272 | $ 92,100 | $ 75 |
Note 10 - Subordinated Notes _5
Note 10 - Subordinated Notes Payable - Schedule of Subordinated Notes Payable (Details) (Parentheticals) - Subordinated notes payable, maturing May 2031 [member] - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Term (Year) | 10 years | 10 years |
Principal amount | $ 75 | $ 75 |
Interest rate | 5.38% | 5.38% |
Maturity date | May 31, 2031 | May 31, 2031 |
Note 11 - Other Liabilities (De
Note 11 - Other Liabilities (Details Textual) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Bottom of range [member] | ||
Statement Line Items [Line Items] | ||
Lease liabilities, period for payment adjustments (Year) | 3 years | |
Top of range [member] | ||
Statement Line Items [Line Items] | ||
Lease liabilities, period for payment adjustments (Year) | 5 years |
Note 11 - Other Liabilities - S
Note 11 - Other Liabilities - Schedule of Other Liabilities (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Accounts payable and other | $ 7,662 | $ 6,893 |
Current income tax liability | 5,797 | 2,949 |
Deferred income tax liability (note 14) | 786 | 898 |
Lease obligations | 4,471 | 5,113 |
Cash collateral and amounts held in escrow | 8,006 | 7,887 |
Cash reserves on loan and lease receivables | 126,110 | 110,764 |
Other liabilities | $ 152,832 | $ 134,504 |
Note 12 - Share Capital (Detail
Note 12 - Share Capital (Details Textual) $ / shares in Units, $ / shares in Units, $ in Millions | 12 Months Ended | |||||||||||
Aug. 05, 2022 shares | Oct. 07, 2021 CAD ($) $ / shares shares | Sep. 29, 2021 CAD ($) $ / shares | Sep. 29, 2021 USD ($) shares | Sep. 21, 2021 USD ($) shares | Apr. 30, 2021 CAD ($) $ / shares shares | Oct. 31, 2022 CAD ($) $ / shares shares | Oct. 31, 2021 CAD ($) $ / shares shares | Sep. 29, 2021 $ / shares | Sep. 21, 2021 $ / shares | Sep. 21, 2021 $ / shares | Oct. 31, 2020 shares | |
Statement Line Items [Line Items] | ||||||||||||
Number of shares issued for offering (in shares) | shares | 1,700,000 | 825,000 | 5,500,000 | |||||||||
Shares purchased and cancelled during period (in shares) | shares | 195,300 | |||||||||||
Reduction of issued capital | $ 39,000 | $ 1,900,000 | ||||||||||
Shares issued, price per share (in dollars per share) | (per share) | $ 12.74 | $ 10 | $ 12.68 | $ 10 | ||||||||
Proceeds from issue of ordinary shares | $ 73,200,000 | $ 8.3 | $ 55 | 0 | $ 73,226,000 | |||||||
Overallotment shares, percent of shares issued in offering | 15% | 15% | ||||||||||
Payments for share issue costs | $ 5,400,000 | $ 1,100,000 | ||||||||||
Adjustments for deferred tax expense | $ 1,900,000 | |||||||||||
Shares cancelled during period (in shares) | shares | 7,477 | |||||||||||
Shares cancelled, price per share (in CAD per share) | $ / shares | $ 5.24 | |||||||||||
Payments for redemption of preference shares | $ 16,800,000 | |||||||||||
Retained earnings [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Reduction to retained earnings | 238,000 | |||||||||||
Share issue related cost | $ 0 | $ (1,123,000) | ||||||||||
Ordinary shares [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Par value per share (in CAD per share) | $ / shares | $ 0 | |||||||||||
Floor price per share (in CAD per share) | $ / shares | $ 0.75 | |||||||||||
Ordinary shares [member] | Issued capital [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Number of shares issued for offering (in shares) | shares | 0 | 6,325,000 | ||||||||||
Reduction of issued capital | $ 1,692,000 | $ 39,000 | ||||||||||
Shares cancelled during period (in shares) | shares | 195,300 | 7,477 | ||||||||||
Number of shares outstanding at end of period (in shares) | shares | 27,245,782 | 27,441,082 | 21,123,559 | |||||||||
Series 1 preferred shares [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Par value per share (in CAD per share) | $ / shares | $ 10 | $ 10 | ||||||||||
Dividends paid, other shares per share (in CAD per share) | $ / shares | $ 0.6772 | |||||||||||
Dividend, annual yield | 6.772% | |||||||||||
Dividends rate, period for reset (Year) | 5 years | |||||||||||
Dividend rate, adjustment | 5.43% | |||||||||||
Preferred shares, period for mandatory redemption (Year) | 5 years | |||||||||||
Series 1 preferred shares [member] | Issued capital [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Number of shares outstanding at end of period (in shares) | shares | 1,461,460 | 1,461,460 | ||||||||||
Series 2 preferred shares [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Dividend rate, adjustment | 5.43% | |||||||||||
Series 1 and 2 preferred shares [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Preference shares, conversion price (in CAD per share) | $ / shares | $ 10 | |||||||||||
Series 3 preferred shares [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Preference shares, conversion price (in CAD per share) | $ / shares | $ 10 | |||||||||||
Number of shares outstanding at end of period (in shares) | shares | 1,681,320 | |||||||||||
Payments for redemption of preference shares | $ 16,800,000 | |||||||||||
Share issue related cost | $ 1,100,000 | |||||||||||
Series 3 preferred shares [member] | Issued capital [member] | ||||||||||||
Statement Line Items [Line Items] | ||||||||||||
Reduction of issued capital | $ 0 | $ 15,690,000 | ||||||||||
Number of shares outstanding at end of period (in shares) | shares | 0 | 0 | 1,681,320 |
Note 12 - Share Capital - Issue
Note 12 - Share Capital - Issued and Outstanding Shares (Details) - CAD ($) | 12 Months Ended | |||||||
Aug. 05, 2022 | Oct. 07, 2021 | Sep. 29, 2021 | Sep. 29, 2021 | Sep. 21, 2021 | Apr. 30, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||||||||
Balance | $ 332,106,000 | |||||||
Issued during the year (in shares) | 1,700,000 | 825,000 | 5,500,000 | |||||
Issued during the year | $ 75,100,000 | |||||||
Cancelled during the year (in shares) | (7,477) | |||||||
Cancelled during the year | $ (39,000) | (1,900,000) | ||||||
Redemption of preferred shares (in shares) | (1,681,320) | |||||||
Balance | 350,675,000 | $ 332,106,000 | ||||||
Issued capital [member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Balance | 241,321,000 | |||||||
Balance | $ 239,629,000 | $ 241,321,000 | ||||||
Ordinary shares [member] | Issued capital [member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Balance (in shares) | 27,441,082 | 21,123,559 | ||||||
Balance | $ 227,674,000 | $ 152,612,000 | ||||||
Issued during the year (in shares) | 0 | 6,325,000 | ||||||
Issued during the year | $ 0 | $ 75,101,000 | ||||||
Cancelled during the year (in shares) | (195,300) | (7,477) | ||||||
Cancelled during the year | $ (1,692,000) | $ (39,000) | ||||||
Balance (in shares) | 27,245,782 | 27,441,082 | ||||||
Balance | $ 225,982,000 | $ 227,674,000 | ||||||
Series 1 preferred shares [member] | Issued capital [member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Balance (in shares) | 1,461,460 | |||||||
Balance | $ 13,647,000 | |||||||
Balance (in shares) | 1,461,460 | 1,461,460 | ||||||
Balance | $ 13,647,000 | $ 13,647,000 | ||||||
Series 3 preferred shares [member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Balance (in shares) | 1,681,320 | |||||||
Series 3 preferred shares [member] | Issued capital [member] | ||||||||
Statement Line Items [Line Items] | ||||||||
Balance (in shares) | 0 | 1,681,320 | ||||||
Balance | $ 0 | $ 15,690,000 | ||||||
Cancelled during the year | $ 0 | $ (15,690,000) | ||||||
Redemption of preferred shares (in shares) | 0 | (1,681,320) | ||||||
Balance (in shares) | 0 | 0 | ||||||
Balance | $ 0 | $ 0 |
Note 13 - Stock-based Compens_3
Note 13 - Stock-based Compensation (Details Textual) | 12 Months Ended | ||
Oct. 31, 2022 CAD ($) $ / shares | Oct. 31, 2021 CAD ($) $ / shares | Oct. 31, 2020 | |
Statement Line Items [Line Items] | |||
Option life, share options granted | 3.5 | ||
Total expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets | $ | $ 1.5 | $ 0 | |
Number of share options granted in share-based payment arrangement | 971,707 | 0 | |
Risk free interest rate, share options granted | 1.39% | ||
Expected volatility, share options granted | 29.50% | ||
Expected dividend as percentage, share options granted | 0.64% | ||
Forfeiture rate, share options granted | 2% | ||
Weighted average share price, share options granted (in CAD per share) | $ 3.03 | ||
Number of share options outstanding in share-based payment arrangement at end of period | 965,766 | 40,000 | 42,017 |
Weighted average exercise price of share options exercisable in share-based payment arrangement (in CAD per share) | $ 7 | ||
Options vesting immediately [member] | |||
Statement Line Items [Line Items] | |||
Percentage of options vesting for share-based payment arrangement | 33.33% | ||
Options vesting first anniversary [member] | |||
Statement Line Items [Line Items] | |||
Percentage of options vesting for share-based payment arrangement | 33.33% | ||
Options vesting second anniversary [member] | |||
Statement Line Items [Line Items] | |||
Percentage of options vesting for share-based payment arrangement | 1% | ||
Top of range [member] | |||
Statement Line Items [Line Items] | |||
Option life, share options granted | 5 |
Note 13 - Stock-based Compens_4
Note 13 - Stock-based Compensation - Stock Option Transactions (Details) | 12 Months Ended | |
Oct. 31, 2022 $ / shares | Oct. 31, 2021 $ / shares | |
Statement Line Items [Line Items] | ||
Outstanding, beginning of period | 40,000 | 42,017 |
Outstanding, beginning of period, weighted average exercise price (in CAD per share) | $ 7 | $ 10.73 |
Granted | 971,707 | 0 |
Granted, weighted average exercise price (in CAD per share) | $ 15.90 | $ 0 |
Exercised | 0 | 0 |
Exercised, weighted average exercise price (in CAD per share) | $ 0 | $ 0 |
Forfeited/cancelled | (45,941) | 0 |
Forfeited/cancelled (in CAD per share) | $ 15.90 | $ 0 |
Expired | 0 | (2,017) |
Expired, weighted average exercise price (in CAD per share) | $ 0 | $ 10.73 |
Outstanding, end of period | 965,766 | 40,000 |
Outstanding, beginning of period, weighted average exercise price (in CAD per share) | $ 15.53 | $ 7 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - CAD ($) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Applicable tax rate | 27% | 27% |
Net deferred tax assets | $ 1,342,000 | $ 2,033,000 |
Tax effect from dividends on taxable preferred shares | 396,000 | 631,000 |
Capital loss carryforwards | 9,500,000 | 9,500,000 |
Deductible temporary differences for which no deferred tax asset is recognised | 3,900,000 | 1,500,000 |
No expiration [member] | ||
Statement Line Items [Line Items] | ||
Unused tax losses for which no deferred tax asset recognised | 1,500,000 | 970,000 |
Dependent on future taxable earnings in tax jurisdiction [member] | ||
Statement Line Items [Line Items] | ||
Net deferred tax assets | 692,000 | 0 |
United States tax losses [member] | ||
Statement Line Items [Line Items] | ||
Unused tax losses for which no deferred tax asset recognised | 339,000 | 268,000 |
Capital loss carryforwards [member] | ||
Statement Line Items [Line Items] | ||
Unused tax losses for which no deferred tax asset recognised | $ 1,300,000 | $ 1,300,000 |
Note 14 - Income Taxes - Comput
Note 14 - Income Taxes - Computation of Income Taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Income before income taxes | $ 32,548 | $ 30,789 |
Income tax rate | 27% | 27% |
Expected income tax provision | $ 8,788 | $ 8,313 |
Tax rate differential | 172 | (83) |
Unrecognized deferred tax asset | 411 | 159 |
Other permanent differences | 519 | 20 |
Income taxes | $ 9,890 | $ 8,409 |
Note 14 - Income Taxes - Income
Note 14 - Income Taxes - Income Taxes (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Current income taxes | $ 9,199 | $ 4,319 |
Deferred income taxes | 691 | 4,090 |
Income taxes | $ 9,890 | $ 8,409 |
Note 14 - Income Taxes - Compon
Note 14 - Income Taxes - Components of Recognized Deferred Income Tax Assets (Liabilities) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Net deferred income tax assets | $ 2,033 | $ 5,145 |
Recognized in net income | (691) | (4,090) |
Recognized on acquisition | 0 | (898) |
Recognized directly to equity | 1,342 | 1,876 |
Net deferred income tax assets | 2,033 | |
Deferred income tax asset (note 14) | 2,128 | 2,931 |
Deferred tax liabilities | (786) | (898) |
Net deferred income tax assets | 1,342 | 2,033 |
Allowance for credit losses [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | 388 | 474 |
Recognized in net income | 120 | (86) |
Recognized on acquisition | 0 | 0 |
Recognized directly to equity | 508 | 0 |
Net deferred income tax assets | 388 | |
Loss carryforwards [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | 338 | 4,166 |
Recognized in net income | (338) | (3,828) |
Recognized on acquisition | 0 | 0 |
Recognized directly to equity | 0 | 0 |
Net deferred income tax assets | 338 | |
Share issue and financing costs [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | 1,373 | 87 |
Recognized in net income | (464) | (590) |
Recognized on acquisition | 0 | 0 |
Recognized directly to equity | 909 | 1,876 |
Net deferred income tax assets | 1,373 | |
Deposit commissions [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | (981) | (865) |
Recognized in net income | (246) | (116) |
Recognized on acquisition | 0 | 0 |
Recognized directly to equity | (1,227) | 0 |
Net deferred income tax assets | (981) | |
Intangible assets [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | (898) | 0 |
Recognized in net income | 112 | 0 |
Recognized on acquisition | 0 | (898) |
Recognized directly to equity | (786) | 0 |
Net deferred income tax assets | (898) | |
Deferred loan fees [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | 757 | 526 |
Recognized in net income | (99) | 231 |
Recognized on acquisition | 0 | 0 |
Recognized directly to equity | 658 | 0 |
Net deferred income tax assets | 757 | |
Other temporary differences [member] | ||
Statement Line Items [Line Items] | ||
Net deferred income tax assets | 1,056 | 757 |
Recognized in net income | 224 | 299 |
Recognized on acquisition | 0 | 0 |
Recognized directly to equity | $ 1,280 | 0 |
Net deferred income tax assets | $ 1,056 |
Note 15 - Per Share Amounts - B
Note 15 - Per Share Amounts - Basic and Diluted Income Per Common Share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Net income | $ 22,658 | $ 22,380 |
Preferred share dividends paid | (988) | (1,578) |
Net income available to common shareholders | $ 21,670 | $ 20,802 |
Weighted average number of common shares outstanding (in shares) | 27,425,479 | 21,752,930 |
Basic and diluted income per common share: (in CAD per share) | $ 0.79 | $ 0.96 |
Note 16 - Nature and Extent o_3
Note 16 - Nature and Extent of Risks Arising from Financial Instruments (Details Textual) $ in Thousands | Oct. 31, 2022 CAD ($) |
Interest rate risk [member] | |
Statement Line Items [Line Items] | |
Financial instruments designated as hedging instruments, at fair value | $ 0 |
Note 16 - Nature and Extent o_4
Note 16 - Nature and Extent of Risks Arising from Financial Instruments - Analysis of Sensitivity to Market Interest Rates (Details) - Interest rate risk [member] - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Increase 100 bps [member] | ||
Statement Line Items [Line Items] | ||
Sensitivity of projected net interest income during a 12 month period | $ 4,304 | $ 4,147 |
Duration difference between assets and liabilities (months) (Month) | 1 month 12 days | 2 months 9 days |
Decrease 100 bps [member] | ||
Statement Line Items [Line Items] | ||
Sensitivity of projected net interest income during a 12 month period | $ (4,261) | $ (3,220) |
Note 17 - Interest Rate Risk _3
Note 17 - Interest Rate Risk and Liquidity Risk - Interest Rate Risk Gaps (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 |
Statement Line Items [Line Items] | |||
Cash | $ 88,581 | $ 271,523 | $ 257,644 |
Securities | 141,564 | 0 | |
Loans | 2,992,678 | 2,103,050 | |
Other | 43,175 | 40,513 | |
Total assets | 3,265,998 | 2,415,086 | |
Deposits | 2,657,540 | 1,853,204 | |
Subordinated notes | 104,951 | 95,272 | |
Other | 152,832 | 134,504 | |
Equity | 350,675 | 332,106 | |
Total liabilities and equity | 3,265,998 | 2,415,086 | |
Gap | 0 | 0 | |
Cumulative | 0 | 0 | |
Interest rate risk [member] | |||
Statement Line Items [Line Items] | |||
Cash | 0 | ||
Securities | 0 | ||
Loans | 12,798 | ||
Other | 43,175 | ||
Total assets | 55,973 | ||
Deposits | 26,901 | ||
Subordinated notes | 0 | ||
Other | 18,716 | ||
Equity | 337,028 | ||
Total liabilities and equity | 382,645 | ||
Gap | (326,672) | (299,988) | |
Cumulative | 0 | 0 | |
Floating interest rate [member] | |||
Statement Line Items [Line Items] | |||
Deposits | 507,879 | ||
Floating interest rate [member] | Interest rate risk [member] | |||
Statement Line Items [Line Items] | |||
Cash | 88,581 | ||
Securities | 0 | ||
Loans | 670,350 | ||
Other | 0 | ||
Total assets | 758,931 | ||
Deposits | 507,879 | ||
Subordinated notes | 0 | ||
Other | 134,116 | ||
Equity | 0 | ||
Total liabilities and equity | 641,995 | ||
Gap | 116,936 | 316,829 | |
Cumulative | $ 116,936 | 316,829 | |
Floating interest rate [member] | Interest rate risk [member] | Cash [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.60% | ||
Floating interest rate [member] | Interest rate risk [member] | Loans [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 8.29% | ||
Floating interest rate [member] | Interest rate risk [member] | Deposits from banks [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.81% | ||
Floating interest rate [member] | Interest rate risk [member] | Other liabilities [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 3.17% | ||
Fixed interest rate [member] | Not later than three months [member] | |||
Statement Line Items [Line Items] | |||
Deposits | $ 275,220 | ||
Fixed interest rate [member] | Later than three months and not later than one year [member] | |||
Statement Line Items [Line Items] | |||
Deposits | 904,664 | ||
Fixed interest rate [member] | Later than one year and not later than two years [member] | |||
Statement Line Items [Line Items] | |||
Deposits | 529,806 | ||
Fixed interest rate [member] | Later than five years [member] | |||
Statement Line Items [Line Items] | |||
Deposits | 331 | ||
Fixed interest rate [member] | Interest rate risk [member] | Not later than three months [member] | |||
Statement Line Items [Line Items] | |||
Cash | 0 | ||
Securities | 121,871 | ||
Loans | 106,262 | ||
Other | 0 | ||
Total assets | 228,133 | ||
Deposits | 275,220 | ||
Subordinated notes | 0 | ||
Other | 0 | ||
Equity | 0 | ||
Total liabilities and equity | 275,220 | ||
Gap | (47,087) | (209,462) | |
Cumulative | $ 69,849 | 107,367 | |
Fixed interest rate [member] | Interest rate risk [member] | Not later than three months [member] | Securities [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 3.06% | ||
Fixed interest rate [member] | Interest rate risk [member] | Not later than three months [member] | Loans [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 4.57% | ||
Fixed interest rate [member] | Interest rate risk [member] | Not later than three months [member] | Deposits from banks [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.01% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than three months and not later than one year [member] | |||
Statement Line Items [Line Items] | |||
Cash | $ 0 | ||
Securities | 19,693 | ||
Loans | 501,818 | ||
Other | 0 | ||
Total assets | 521,511 | ||
Deposits | 904,664 | ||
Subordinated notes | 0 | ||
Other | 0 | ||
Equity | 0 | ||
Total liabilities and equity | 904,664 | ||
Gap | (383,153) | (152,523) | |
Cumulative | $ (313,304) | (45,156) | |
Fixed interest rate [member] | Interest rate risk [member] | Later than three months and not later than one year [member] | Securities [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.81% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than three months and not later than one year [member] | Loans [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 5.42% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than three months and not later than one year [member] | Deposits from banks [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.99% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than one year and not later than two years [member] | |||
Statement Line Items [Line Items] | |||
Cash | $ 0 | ||
Securities | 0 | ||
Loans | 238,460 | ||
Other | 0 | ||
Total assets | 238,460 | ||
Deposits | 529,806 | ||
Subordinated notes | 0 | ||
Other | 0 | ||
Equity | 0 | ||
Total liabilities and equity | 529,806 | ||
Gap | (291,346) | (40,897) | |
Cumulative | $ (604,650) | (86,053) | |
Fixed interest rate [member] | Interest rate risk [member] | Later than one year and not later than two years [member] | Loans [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 4.93% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than one year and not later than two years [member] | Deposits from banks [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.90% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than two year and not later than five years [member] | |||
Statement Line Items [Line Items] | |||
Cash | $ 0 | ||
Securities | 0 | ||
Loans | 1,050,292 | ||
Other | 0 | ||
Total assets | 1,050,292 | ||
Deposits | 412,739 | ||
Subordinated notes | 0 | ||
Other | $ 0 | ||
Effective rate | 6.77% | ||
Equity | $ 13,647 | ||
Total liabilities and equity | 426,386 | ||
Gap | 623,906 | 327,480 | |
Cumulative | $ 19,256 | 241,427 | |
Fixed interest rate [member] | Interest rate risk [member] | Later than two year and not later than five years [member] | Loans [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 4.95% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than two year and not later than five years [member] | Deposits from banks [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 2.57% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than five years [member] | |||
Statement Line Items [Line Items] | |||
Cash | $ 0 | ||
Securities | 0 | ||
Loans | 412,698 | ||
Other | 0 | ||
Total assets | 412,698 | ||
Deposits | 331 | ||
Subordinated notes | 104,951 | ||
Other | 0 | ||
Equity | 0 | ||
Total liabilities and equity | 105,282 | ||
Gap | 307,416 | 58,561 | |
Cumulative | $ 326,672 | $ 299,988 | |
Fixed interest rate [member] | Interest rate risk [member] | Later than five years [member] | Loans [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 5.58% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than five years [member] | Deposits from banks [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 5.07% | ||
Fixed interest rate [member] | Interest rate risk [member] | Later than five years [member] | Subordinated notes [member] | |||
Statement Line Items [Line Items] | |||
Effective rate | 5.62% |
Note 18 - Fair Value of Finan_3
Note 18 - Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Deposits from banks [member] | ||
Statement Line Items [Line Items] | ||
Liabilities, book value | $ 2,657,540 | $ 1,853,204 |
Liabilities, fair value | 2,561,421 | 1,860,332 |
Subordinated notes [member] | ||
Statement Line Items [Line Items] | ||
Liabilities, book value | 104,951 | 95,272 |
Liabilities, fair value | 107,368 | 97,910 |
Other liabilities [member] | ||
Statement Line Items [Line Items] | ||
Liabilities, book value | 146,249 | 130,657 |
Liabilities, fair value | 146,249 | 130,657 |
Cash and cash equivalents [member] | ||
Statement Line Items [Line Items] | ||
Total loans | 88,581 | 271,523 |
Assets, fair value | 88,581 | 271,523 |
Securities [member] | ||
Statement Line Items [Line Items] | ||
Total loans | 141,564 | 0 |
Assets, fair value | 141,564 | 0 |
Loans, net [member] | ||
Statement Line Items [Line Items] | ||
Total loans | 2,992,678 | 2,103,050 |
Assets, fair value | 2,963,676 | 2,118,636 |
Other assets [member] | ||
Statement Line Items [Line Items] | ||
Total loans | 953 | 953 |
Assets, fair value | $ 953 | $ 953 |
Note 19 - Related Party Trans_2
Note 19 - Related Party Transactions (Details Textual) - CAD ($) | 12 Months Ended | ||||
Oct. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2022 | Apr. 30, 2021 | Mar. 31, 2019 | |
Statement Line Items [Line Items] | |||||
Revenue from rendering of services, related party transactions | $ 95,000 | $ 83,000 | |||
Key management personnel compensation | 6,400,000 | 6,100,000 | |||
Subordinated notes payable [member] | |||||
Statement Line Items [Line Items] | |||||
Borrowings, interest rate | 5% | ||||
Key management personnel of entity or parent [member] | |||||
Statement Line Items [Line Items] | |||||
Amounts receivable, related party transactions | 1,300,000 | 1,500,000 | |||
Allowance account for credit losses of financial assets at end of period | 0 | $ 0 | |||
Key management personnel of entity or parent [member] | Subordinated notes payable [member] | |||||
Statement Line Items [Line Items] | |||||
Notional amount | $ 500,000 | ||||
Corporation controlled by key management personnel [member] | |||||
Statement Line Items [Line Items] | |||||
Amounts receivable, related party transactions | 3,900,000 | 2,800,000 | |||
Key management personnel compensation | $ 1,100,000 | $ 0 | |||
Corporation controlled by key management personnel [member] | Subordinated notes payable [member] | |||||
Statement Line Items [Line Items] | |||||
Borrowings, interest rate | 10% |
Note 20 - Commitments and Con_3
Note 20 - Commitments and Contingencies (Details Textual) - CAD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Financial assets pledged as collateral for liabilities or contingent liabilities | $ 11.1 | $ 7.8 |
Note 20 - Commitments and Con_4
Note 20 - Commitments and Contingencies - Credit Related Commitments (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Credit commitments | $ 443,124 | $ 342,710 |
Loan commitments [member] | ||
Statement Line Items [Line Items] | ||
Credit commitments | 382,851 | 296,248 |
Letters of credit [member] | ||
Statement Line Items [Line Items] | ||
Credit commitments | $ 60,273 | $ 46,462 |
Note 21 - Capital Management (D
Note 21 - Capital Management (Details Textual) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | ||||||||||
Aug. 05, 2022 shares | Sep. 29, 2021 CAD ($) $ / shares | Sep. 29, 2021 USD ($) shares | Sep. 21, 2021 USD ($) shares | Apr. 30, 2021 CAD ($) $ / shares shares | Oct. 31, 2022 CAD ($) | Oct. 31, 2021 CAD ($) | Sep. 29, 2021 $ / shares | Sep. 21, 2021 $ / shares | Sep. 21, 2021 $ / shares | Apr. 30, 2021 USD ($) | |
Statement Line Items [Line Items] | |||||||||||
Maximum percentage of credit risk-weighted assets for allowance | 1.25% | ||||||||||
Shares redeemed during period (in shares) | shares | 1,681,320 | ||||||||||
Shares redeemed, price per share (in CAD per share) | (per share) | $ 10 | $ 12.68 | $ 10 | ||||||||
Payments for redemption of preference shares | $ 16,800 | ||||||||||
Payments for share issue costs | $ 5,400 | 1,100 | |||||||||
Number of shares issued for offering (in shares) | shares | 1,700,000 | 825,000 | 5,500,000 | ||||||||
Proceeds from issue of ordinary shares | $ 73,200 | $ 8.3 | $ 55 | $ 0 | $ 73,226 | ||||||
Overallotment shares, percent of shares issued in offering | 15% | 15% | |||||||||
Shares issued, price per share (in dollars per share) | (per share) | $ 12.74 | $ 10 | $ 12.68 | $ 10 | |||||||
Issue of equity | $ 75,100 | ||||||||||
Required minimum capital ratio, common equity tier 1 | 7% | ||||||||||
Required minimum capital ratio, tier 1 capital | 8.50% | ||||||||||
Required minimum capital ratio, total capital | 10.50% | ||||||||||
Capital conservation buffer | 2.50% | ||||||||||
Minimum leverage ratio | 3% | ||||||||||
Subordinated notes payable [member] | |||||||||||
Statement Line Items [Line Items] | |||||||||||
Total borrowings | $ 92,100 | $ 104,951 | $ 95,272 | $ 75 | |||||||
Borrowings, interest rate | 5% | 5% | |||||||||
Subordinated notes payable [member] | Three month Bankers' Acceptance Rate [member] | |||||||||||
Statement Line Items [Line Items] | |||||||||||
Borrowings, adjustment to interest rate basis | 3.61% | 3.61% |
Note 21 - Capital Management -
Note 21 - Capital Management - Risk-based Capital Ratios (Details) - CAD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement Line Items [Line Items] | ||
Directly issued capital instruments | $ 239,629 | $ 241,321 |
Contributed surplus | 1,612 | 145 |
Retained earnings | 109,335 | 90,644 |
Accumulated other comprehensive income | 99 | (4) |
Regulatory capital | 448,575 | 418,718 |
Total risk-weighted assets | $ 2,714,902 | $ 2,013,544 |
CET1 capital ratio | 16.52% | 20.80% |
Total assets | $ 3,265,998 | $ 2,415,086 |
Transitional [member] | ||
Statement Line Items [Line Items] | ||
Regulatory capital | 448,575 | |
Total risk-weighted assets | $ 2,714,902 | |
CET1 capital ratio | 16.52% | |
Basel III [member] | ||
Statement Line Items [Line Items] | ||
Total assets | $ 3,265,998 | 2,415,086 |
Total on-balance sheet exposures | 3,254,627 | 2,402,335 |
Off-balance sheet exposure at gross notional amount | 443,124 | 342,710 |
Adjustments for conversion to credit equivalent amount | 251,101 | 210,065 |
Off-balance sheet exposures | 192,023 | 132,645 |
Total exposures | $ 3,446,650 | $ 2,534,980 |
Leverage ratio | 9.84% | 12.60% |
Basel III [member] | Transitional [member] | ||
Statement Line Items [Line Items] | ||
Total assets | $ 3,265,998 | |
Total on-balance sheet exposures | 3,254,627 | |
Off-balance sheet exposure at gross notional amount | 443,124 | |
Adjustments for conversion to credit equivalent amount | 251,101 | |
Off-balance sheet exposures | 192,023 | |
Total exposures | $ 3,446,650 | |
Leverage ratio | 9.84% | |
Common equity tier 1 [member] | ||
Statement Line Items [Line Items] | ||
Directly issued capital instruments | $ 225,982 | $ 227,674 |
Contributed surplus | 1,612 | 145 |
Retained earnings | 109,335 | 90,644 |
Accumulated other comprehensive income | 99 | (4) |
Regulatory capital before adjustments | 337,028 | 318,459 |
Adjustments to capital | (11,371) | (12,751) |
Regulatory capital | $ 325,657 | $ 305,708 |
CET1 capital ratio | 12% | 15.18% |
Common equity tier 1 [member] | Transitional [member] | ||
Statement Line Items [Line Items] | ||
Directly issued capital instruments | $ 225,982 | |
Contributed surplus | 1,612 | |
Retained earnings | 109,335 | |
Accumulated other comprehensive income | 99 | |
Regulatory capital before adjustments | 337,028 | |
Adjustments to capital | (11,371) | |
Regulatory capital | $ 325,657 | |
CET1 capital ratio | 12% | |
Capital Tier 1 [member] | ||
Statement Line Items [Line Items] | ||
Directly issued capital instruments | $ 13,647 | $ 13,647 |
Regulatory capital | $ 339,304 | $ 319,355 |
CET1 capital ratio | 12.50% | 15.86% |
Capital Tier 1 [member] | Transitional [member] | ||
Statement Line Items [Line Items] | ||
Directly issued capital instruments | $ 13,647 | |
Regulatory capital | $ 339,304 | |
CET1 capital ratio | 12.50% | |
Tier 2 capital [member] | ||
Statement Line Items [Line Items] | ||
Directly issued capital instruments | $ 107,367 | $ 97,910 |
Regulatory capital before adjustments | 107,367 | 97,910 |
Adjustments to capital | 1,904 | 1,453 |
Regulatory capital | 109,271 | $ 99,363 |
Tier 2 capital [member] | Transitional [member] | ||
Statement Line Items [Line Items] | ||
Directly issued capital instruments | 107,367 | |
Regulatory capital before adjustments | 107,367 | |
Adjustments to capital | 1,904 | |
Regulatory capital | $ 109,271 |
Note 22 - Operating Segments (D
Note 22 - Operating Segments (Details Textual) | 12 Months Ended |
Oct. 31, 2022 | |
Statement Line Items [Line Items] | |
Number of segments | 2 |
Note 22 - Operating Segments -
Note 22 - Operating Segments - Results of Reportable Operating Segments (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Statement Line Items [Line Items] | ||
Net interest income | $ 76,666 | $ 60,157 |
Non-interest income | 5,726 | 5,200 |
Total revenue | 82,392 | 65,357 |
Provision for (recovery of) credit losses | 451 | (438) |
Revenue less provision for credit loss | 81,941 | 65,795 |
Non-interest expenses: | ||
Salaries and benefits | 26,796 | 20,243 |
General and administrative | 18,732 | 11,110 |
Premises and equipment | 3,865 | 3,653 |
Noninterest expense | 49,393 | 35,006 |
Income before income taxes | 32,548 | 30,789 |
Income tax provision | 9,890 | 8,409 |
Net income | 22,658 | 22,380 |
Total assets | 3,265,998 | 2,415,086 |
Total liabilities | 2,915,323 | 2,082,980 |
Elimination of intersegment amounts [member] | ||
Statement Line Items [Line Items] | ||
Net interest income | 0 | 0 |
Non-interest income | (165) | (151) |
Total revenue | (165) | (151) |
Provision for (recovery of) credit losses | 0 | 0 |
Revenue less provision for credit loss | (165) | (151) |
Non-interest expenses: | ||
Salaries and benefits | 0 | 0 |
General and administrative | (165) | (151) |
Premises and equipment | 0 | 0 |
Noninterest expense | (165) | (151) |
Income before income taxes | 0 | 0 |
Income tax provision | 0 | 0 |
Net income | 0 | 0 |
Total assets | (23,826) | (19,013) |
Total liabilities | (22,681) | (17,868) |
Banking segment [member] | Operating segments [member] | ||
Statement Line Items [Line Items] | ||
Net interest income | 76,666 | 60,157 |
Non-interest income | 52 | (60) |
Total revenue | 76,718 | 60,097 |
Provision for (recovery of) credit losses | 451 | (438) |
Revenue less provision for credit loss | 76,267 | 60,535 |
Non-interest expenses: | ||
Salaries and benefits | 22,303 | 18,354 |
General and administrative | 17,614 | 10,289 |
Premises and equipment | 2,475 | 2,403 |
Noninterest expense | 42,392 | 31,046 |
Income before income taxes | 33,875 | 29,489 |
Income tax provision | 9,744 | 7,817 |
Net income | 24,131 | 21,672 |
Total assets | 3,267,479 | 2,411,790 |
Total liabilities | 2,912,249 | 2,077,643 |
Cybersecurity segment [member] | Operating segments [member] | ||
Statement Line Items [Line Items] | ||
Net interest income | 0 | 0 |
Non-interest income | 5,839 | 5,411 |
Total revenue | 5,839 | 5,411 |
Provision for (recovery of) credit losses | 0 | 0 |
Revenue less provision for credit loss | 5,839 | 5,411 |
Non-interest expenses: | ||
Salaries and benefits | 4,493 | 1,889 |
General and administrative | 1,283 | 972 |
Premises and equipment | 1,390 | 1,250 |
Noninterest expense | 7,166 | 4,111 |
Income before income taxes | (1,327) | 1,300 |
Income tax provision | 146 | 592 |
Net income | (1,473) | 708 |
Total assets | 22,345 | 22,309 |
Total liabilities | $ 25,755 | $ 23,205 |
Note 23 - Acquisitions (Details
Note 23 - Acquisitions (Details Textual) $ in Millions | 12 Months Ended | ||||
Nov. 30, 2020 CAD ($) | Oct. 31, 2022 CAD ($) | Oct. 31, 2021 CAD ($) | Jun. 14, 2022 CAD ($) | Jun. 14, 2022 USD ($) | |
Statement Line Items [Line Items] | |||||
Amortisation, intangible assets other than goodwill | $ 456,000 | $ 299,000 | |||
Steams Bank Holdingford, N.A. [member] | |||||
Statement Line Items [Line Items] | |||||
Total consideration transferred, acquisition-date fair value | $ 18,400,000 | $ 13.5 | |||
Assets recognised as of acquisition date | $ 60 | ||||
The 2021945 Ontario Inc. [member] | |||||
Statement Line Items [Line Items] | |||||
Total consideration transferred, acquisition-date fair value | $ 9.9 | ||||
Percentage of voting equity interests acquired | 100% | ||||
Cash transferred | $ 8,500,000 | ||||
Liabilities incurred | $ 1,400,000 | ||||
Useful life measured as period of time, intangible assets other than goodwill (Year) | 10 years | ||||
Goodwill expected to be deductible for tax purposes | $ 0 | ||||
Revenue of acquiree since acquisition date | 5,600,000 | 5,200,000 | |||
Profit (loss) of acquiree since acquisition date | 964,000 | 1,500,000 | |||
Amortisation, intangible assets other than goodwill | 456,000 | $ 299,000 | |||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 180,000 |
Note 23 - Acquisition - Prelimi
Note 23 - Acquisition - Preliminary Fair Value of the Assets Acquired and Liabilities Assumed on Acquisition (Details) - The 2021945 Ontario Inc. [member] $ in Thousands | Nov. 30, 2020 CAD ($) |
Statement Line Items [Line Items] | |
Cash | $ 1,057 |
Accounts receivable | 1,451 |
Right-of-use assets | 2,473 |
Other assets | 1,194 |
Intangible assets | 3,940 |
Goodwill | 5,754 |
Deferred income tax liability | (898) |
Lease obligations | (2,650) |
Other liabilities | (2,381) |
Net identifiable assets acquired (liabilities assumed) | $ 9,940 |